Insurance Requirements
Most contracts with the City require the contractor/consultants to maintain specific levels of insurance. The types and levels of insurance vary based on the nature of the contract. As part of the contract process, the City requires that a certificate of insurance with an endorsement be provided to the City. Both documents must name the City of Bellingham as the insured. Please be aware that the contract will not be signed by the City until these insurance documents are provided to the City.
Background and Specifics For Endorsements
In recent years, insurance companies have taken to putting a “Disclaimer” add-on to the back side of insurance certificates they provide the City as required by our various contracts. The add-on usually reads as follows:
“IMPORTANT If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). IF SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). DISCLAIMER The certificate of insurance on the reverse side of this form does not constitute a contract between the issuing insurer(s), authorized representative or producer, and the certificate holder, nor does it affirmatively or negatively amend, extend, or alter the coverage afforded by the policies listed thereon.”
Even in the absence of this second/back page disclaimer, the face of insurance certificates contain the following usually in the upper right corner:
“THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.”
This language also gives rise to the need for an endorsement to confirm the City’s status as an additional insured.
As a result of the above, the City requires that all contractors/consultants provide the City with written confirmation that they have obtained the necessary endorsement so that the City’s rights as an additional insured are protected.
Your insurance company requires the endorsement as a means of notification both to itself and its underwriters of the fact that an additional insured has been added to the policy under the contract in question.
Please take note of this requirement and request the necessary endorsement at the same time that you request the required insurance certificate. Most insurance companies are familiar with this type of request and it should be no problem for them to provide the endorsement. The below is an example of this type of endorsement:
For more information, please contact your insurance company.
