General Liability Insurance Questions to Review Before Signing a Major Client Contract
A major client contract can be a growth milestone, but it can also raise your risk overnight. Higher revenue often comes with stricter insurance requirements, tighter deadlines for certificates, and contract language that shifts responsibility. Before you sign, use this general liability insurance checklist to confirm your coverage matches what the agreement expects.
Why Contracts Create Coverage Pressure
Contracts often require specific limits, additional insured status, and proof of coverage within a short window. Some agreements also include indemnification clauses that expand what you are agreeing to defend. Even when your operations do not change, a contract can change your financial exposure because it can define who pays first and who must respond when something goes wrong.
It is also common for requirements to be copied from larger vendor templates. That means you may see insurance language that does not match your work, or that asks for coverage that belongs elsewhere in your program.
Questions to Ask About General Liability Insurance
Use these questions to identify gaps before the contract is signed.
Do my limits meet the contract requirements?
Compare required per-occurrence and aggregate limits to what is shown on your declarations page.Will the contract require “additional insured” status?
If yes, confirm the policy can add the required wording and whether it applies to ongoing and completed operations.Are defense costs inside or outside the limit?
This can affect how much limit remains available if a claim becomes expensive to defend.Do exclusions affect the work described in the contract?
Review any exclusions related to your operations, products, or locations so you are not relying on assumptions.How will certificates be issued and tracked?
Confirm the certificate holder’s name, address, and deadlines, and keep a record for renewals.
For a plain-language look at why liability terms and endorsements vary across carriers, the NAIC’s consumer resources will help you understand how coverage components fit together.
How a BOP Fits Into Contract Requirements
Many businesses use a BOP as the foundation for liability and property coverage, but contract requirements can expose limits. If a contract requires higher limits than your base policy, you may need an umbrella or other adjustments rather than only raising the base limits.
A helpful reference for understanding common BOP components is here: https://www.iii.org/article/what-is-businessowners-policy-bop
Also confirm that your locations and operations are described accurately. If the contract changes where you work, how often you are on-site, or whether subcontractors are used, those operational changes should be documented so the policy assumptions remain accurate.
A Quick Pre-Sign Checklist
Before you sign, confirm these items match the contract language:
Required limits and aggregates
Additional insured wording and scope
Waiver of subrogation requirements, if any
Primary and noncontributory wording, if required
Certificate holder details and delivery timeline
If operational changes are needed midterm, keep documentation consistent with a written change request: https://hulettinsurance.com/client-center/request-policy-change/
Key Takeaways
Major contracts can expand exposure even if your daily work stays the same.
Review limits, additional insured wording, and exclusions before you sign.
A short checklist prevents last-minute certificate and endorsement issues.
Disclaimer: This content is for informational purposes only and does not constitute professional advice