What Are Insurance Requirements?

What do insurance requirements look like?

A typical set of requirements might read: $1 million general liability per occurrence, $2 million aggregate, additional insured status, a waiver of subrogation, and primary and noncontributory wording. The clearer the requirements, the easier it is to tell at a glance whether a partner is compliant.

Where do insurance requirements come from?

They reflect the risk a partner brings. A high-risk trade needs higher limits and more endorsements than a low-risk supplier. Many companies build a requirementmatrix that maps each partner type to the coverage it must carry.

Why do insurance requirements matters for compliance?

Vague or inconsistent requirements are where compliance breaks down, because there is no firm line between compliant and not. Clear requirements are the foundation everything else in COI tracking depends on.

Related resource

Setting requirements for a specific audience? See ourgeneral contractor insurance requirements guide.

And the subcontractor insurance requirements guide forlower-tier partners.