A new agreement in the construction marketplace is gaining popularity; the Estoppel Certificate.  The Estoppel Certificate is typically a one-page contract by which an insurance agent promises not to deny additional insured coverage to anyone listed on the Certificate of Insurance

In the past, parties seeking additional insured status were satisfied with a standard certificate of insurance.  However, because the certificate does not grant coverage the Estoppel Certificate was created.  An insurance industry review of random Estoppel Certificates found them to be vague and elusive.  Most, if not all, insurance companies will not authorize agents to sign off on such documents.

It is important to understand the potential risks these certificates pose for your business.  As always, please contact The Starr Group to clarify or analyze insurance-related documents you are asked to sign.