Why Property Managers Need Certificates of Insurance From EVERYONE

You Protect Your Property – But is Each Tenant Properly Protected?


You protect your property – but is each tenant properly protected? Protecting a property with the proper types of insurance falls under a property manager’s job title and failure to do so is a very serious risk to be avoided – at all cost!  Just assuming that all your tenants and other actors within the sphere of your business dealings are properly insured is NOT a good business tactic.

Improper insurance coverage is a huge risk and a smart property management company will do it due diligence in reducing the risks and limit their liability as landlords. Accidents and damage happen and if tenants, suppliers, contractors or vendors don’t carry the right kind of insurance, it can be an expensive hassle for everyone involved – especially the property owner.

By requiring everyone leasing or working on your property to be insured with adequate liability and workers compensation policies, you can greatly reduce your general liability insurance premiums. However, to reduce your liability rates, you need to maintain meticulous records of ALL COI from each and every party involved.

As a commercial property management company, maintaining diligent records of your tenant’s and contractor’s Certificate of Insurance (COI) just might be the most despised task. True, it is tedious work to verify and keep track of when each and every certificate renews, but it should be a top priority.

A Certificate of Insurance is a standard form issued by the insurance company evidencing the insurance information (including policy limits and types of insurance) of its policyholder. Delaware passed a law in the spring of 2014 that curtailed the improper use of COI and made it illegal to misrepresent the coverage provided by an insurance policy.  The passage of HB 104 has made a property management company’s job a little easier.

Proper COI tracking is important to make sure each vendor, supplier, tenant and contractor is compliant to your insurance requirements. Staying current with verification processes of occupant’s insurance certification, whether initial or renewal, is sound risk management and could avoid any costly law suits down the road.

Many property managers don’t realize the implications of improper COI verifications. Trust me, it is not something you want to learn the hard way.  Insurance is necessary to cover any claims or losses for which the insured may be responsible.

Property managers should request a Certificate of Insurance from each tenant, supplier, contractor or vendor prior to the beginning of work and/or the start of a contract.

If a product or service, in the opinion of Risk Management and Insurance, represents an unusual or exceptional risk, additional insurance for that product or service may be required. Renewal certificates of insurance should be verified annually.


Asset Management Alliance has deep roots in the Delaware community helping all types of commercial property owners protect and enhance the value of their investment through employing a diligent and fully vetted management, maintenance and engineering team that is available 24/7 every day of the year.

Get in Touch — 302-655-2100

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