In the world of tenders, a certificate of insurance is like a driving licence: having one doesn't make you a good driver, but you can't set off without it. Tender documentation increasingly asks for a certificate of cover, and anyone who only starts sorting it out the day before submission is creating their own fire to fight. Here's how to handle it properly.
- A certificate of insurance appearing as a tender condition is simply a fact of market practice – for the specific requirement, the tender documentation always prevails.
- Requirements differ from one tender to the next: type of cover, sums, duration, form of certificate.
- The certificate is issued by the insurer – you need to allow for turnaround time.
- Comparing your existing cover with the tender requirements is the first step, not taking out a new policy.
What can the tender documentation ask for?
The range is wide: some tenders ask only for "valid liability insurance", others expect CAR cover for the full value of the project, and others again set out specific limits and a requirement to maintain cover through the maintenance period. You can't generalise, and you shouldn't try to – the tender wording prevails, and if the interpretation is in doubt, putting the question to the contracting authority is the clean way forward. The insurance-related points to check when reading a tender are gathered in the tender checklist.
Assessing your existing cover
The first step isn't taking out a new policy, but comparing: what does the company's existing cover – annual open cover, contractor's liability – already handle, and what does the tender ask for? A common outcome is that the existing cover is enough and only needs certifying; at other times a top-up is needed (a higher limit, a project-specific endorsement); and sometimes a standalone project policy is the answer. This decision is time-sensitive: both the top-up and the certificate take turnaround time.
Obtaining the certificate
The certificate is issued by the insurer, typically after the policy is taken out or the premium is settled – the process and the time it takes are set out in detail in the certificate-issuing article. Two practical tips: the certificate's form matters too (the tender may ask for a declaration with specific content – we send this to the insurer in advance), and language can also be an issue: a foreign contracting authority may expect an English or German certificate (foreign client article).
After winning the tender
The certificate at tender stage typically shows the position as it stands – but when the contract is signed, the cover you've committed to actually has to be built, and it has to meet the contract's insurance clauses for the whole life of the project. The obligation to maintain cover (cover for the maintenance period, updating the certificate on any extension) becomes part of the project administration: the amendment article. As a broker, I can help across this whole chain – from interpreting the tender documentation to updating the certificate.
A question tailored to your own project? Book a free 20-minute project consultation →
