‍Mishap #1: Taking the COI at Face Value

A COI is just the trailer. The endorsements are the full film.

That “Additional Insured” box checked on the COI? Meaningless without the actual endorsement.

Mini-Story: A national contractor once trusted the “checked box” on a COI without asking for proof. Months later, a claim arose on a jobsite that wasn’t covered under the vendor’s endorsement. The company paid hundreds of thousands of dollars out of pocket — all because they assumed the COI told the whole story.

How to Spot It:

• Always request the endorsements.
• Verify language matches contract requirements.
• Remember: no endorsement = no coverage.

👉 Want a deeper dive? What to Look for in Additional Insured Endorsements.

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Mishap #2: Letting Names Slide

If the COI lists “ABC Construction” but your contract is with “ABC Construction LLC,” you may not be covered.

Think TSA: “Bobby” and “Robert” aren’t the same person on a boarding pass. Insurers are just as picky.

Mini-Story: A COI listed the insured as “Smith Roofing,” but the contract was with “Smith Roofing & Sons, Inc.” When a claim arose, the insurer denied it — wrong entity. It took months (and lawyers) to resolve what could’ve been caught in minutes.

How to Spot It:

• Cross-check insured names against contracts.
• Don’t accept “d/b/a” without clarification.
• Ask vendors to correct and reissue if mismatched.

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Mishap #3: Missing Endorsements

The COI says you’re covered. The endorsement says… not for your project.

Mini-Story: A vendor’s COI listed the client as Additional Insured. The endorsement? It applied only to a different project. When a claim hit, the coverage wasn’t valid for the job at hand. The company carried the liability.

How to Spot It:

• Train your team to check for three essentials: Additional Insured, Waiver of Subrogation, and Primary & Noncontributory.
• Spot-check endorsements against contracts.
• Don’t let work start until endorsements are in hand.

👉 Resource: Must-Have Endorsements Checklist.

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Mishap #4: Believing “One Size Fits All” Limits

A $1M policy on a $5M project is like bringing a pool noodle to a sword fight.

Mini-Story: A developer accepted a vendor with $1M General Liability coverage on a large construction project. When a serious injury occurred, the costs exceeded the policy by millions. The developer absorbed the difference.

How to Spot It:

• Tier requirements by vendor type and risk level.
• Use a simple risk matrix (low, medium, high).
• Review annually to align with project size.

💡 OSHA estimates workplace injuries alone cost U.S. businesses $167B annually. That’s why limits matter.

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Mishap #5: File It and Forget It

Policies expire. Vendors switch carriers. Treating COIs as “one and done” is like watering a plant once and expecting it to thrive.

Mini-Story: A project manager filed vendor COIs without tracking expirations. Six months later, a major claim arose. The vendor’s policy had lapsed weeks before. The company was on the hook.

How to Spot It:

• Automate reminders for expirations.
• Use dashboards to track compliance in real time.
• Escalate only exceptions to human review.

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From Mishaps to Mastery

Every mishap ripples outward:

• Financial: Uninsured claims drain budgets.
• Operational: Projects stall when corrections come late.
• Reputation: Partners lose confidence in your risk management.

But once you know the traps, you can turn them into strengths:

• COIs aren’t just trailers — you’ve got the full film.
• Expirations don’t sneak up — they’re flagged in advance.
• Policy limits match project reality.
• Names align, coverage holds.

That’s not just less risk. That’s more resilience.

📥 Next Step: Download the COI Compliance Scorecard — spot gaps in your compliance process.

Or get practical: Download the Everyday Guide to Insurance Compliance.

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