COIs vs Endorsements

COIs vs Endorsements

I get asked all the time, “What is an endorsement, is it a different document than a COI?”

The answer is yes, they are different documents. 

A COI is like a receipt showing you’ve purchased property insurance, but the endorsement is like an addendum to the policy that specifies exactly what’s covered (for example, fire, flood, or theft) and who is included in the protection (like a landlord or contractor).

Many assume that simply having the COI from a subcontractor or vendor is enough to safeguard against risk. But the truth is, a COI without the proper endorsements offers basically zero protection. 😳

Naturally the next question becomes, “So what type of endorsements should I be asking for?”

In answer to that, asking for both the CG 20 10 and CG 20 10 are a good starting point. 

The Endorsements, in layman’s terms:  

• Imagine you’re hosting a house party. The CG 20 10 (endorsement for ongoing operations) is like having a security guard at the front door while guests are still arriving. The security guard ensures that everything runs smoothly and protects your property while the party is happening. But once the party ends, the guard leaves, and you’re on your own for any issues that pop up after everyone’s gone.
• The CG 20 37 (endorsement for ongoing operations) is like having homeowner’s insurance that covers damages that happen after the party—such as a guest accidentally breaking something when they leave or a mess being discovered later. Even though the party’s over, you’re still covered for anything that comes up afterward, just as CG 20 37 ensures protection for issues that arise after the work is complete.

In Summary:

The COI just proves you vendors have insurance, but without specific endorsements, like CG 20 10 or CG 20 37, it’s not enough to protect you from all risks.