Certificates of Insurance

What are your thoughts about when a Commercial Building Owner demands you to issue a Certificate if Insurance naming them as Certificate Holder and Additional Insured? I have a contract with the buyer and I have no problem protecting my buyer. I never had that happen coming from a Seller. I have no obligation with the seller. Would you issue the certificate with his demands or would you walk away from the business?

Many new home builders do the same thing, just send the COI

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Angelo, it happens all the time. Especially tract builders and commercial buildings.

Call your insurance agent and ask them to send you a Certificate of Insurance for the business being named as an additional insured for this job.

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Part of doing business with the big boys.
Alternative is stay put doing inspections for pennies!

But you are being asked to insure the Seller.

…for General Liability Insurance.

A couple of points you are NOT clear on…

  1. Is this a Commercial or Residential property you will be inspecting?
  2. Is the Buyer purchasing a Commercial Property or a Residential unit in a Commercial property?
  3. If Residential, are there multiple (4+) units involved in the purchase?

Note: If Commercial… Residential GL typically DOES NOT cover Commercial properties.

Commercial deal. The buyer is expanding his medical office. I am being hired by the buyer. So, makes no sense for me to insure the seller. The buyer is the one that has to be protected. Insuring the seller feels like conflict of interest.

Sounds like the owner requires licensed & insured inspectors & contractors. I would want the same & proof of it. Wouldn’t you?
SH-T happens - something could be damaged/expensive.
What if you remove the CB panel cover, arc flash, serious injuries on his property? Trip & fall, etc.

How much coverage is required? Most times it’s $1,000,000.
I suspect you may only have the state minimum of $300K?

I would think if you broke an expensive piece of equipment accidentally, you would be happy that the seller was named as an additional insured for the job with your General Liability Insurance…Or, your ladder got blown on his kid sitting in his Ferrari. JMHO…YMMV

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35+ yrs and so far NEVER been required to provide this for commercial, new construction OR the million dollar + houses

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Richmond America requires it every time I am in a new build.

That seems inconsistent with many other inspector’s experiences. Here in Florida, it’s been a standard requirement for new construction for 2 decades.

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Any of the trades that comes on my construction site I require them to have there insurance company send me the certificate. And proof of workman’s comp.
In addition, It is really no big deal as long as they are insured. The insurance company will send it to my without any problem.

This is an existing building
The seller is asking for insurance when we have no obligation to him. I can understand showing proof of insurance and all that. BUT issuing a certificate in the name of anyone that is not your client is opening up a can of worms

You have an obligation to the OWNER of the property that you will cause no harm to the property (or persons), and if you do, you have the means (insurance) to cover making it whole again!

I guess one could say… if you don’t want to abide by common practice in the Commercial Inspection Industry… go back to inspecting homes!

Impossible to convince a man with a made-up mind :muscle: Good luck :slight_smile:

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He should call his insurance agent for an explanation, but perhaps he doesn’t have one, thus the pushback!

We tried… … … oh well good luck… … …

You arent insuring the seller… You are insuring YOURSELF, in case you get hurt, or cause damage to their property. You are insuring yourself so YOU dont get sued…