Build an Insurance, Bonding, and Risk-Management File

A. Finished-Project Specification

Quantity: one approved Policy and Bond Summary Register, one risk-inventory worksheet, one certificate-of-insurance request and issuance log, one subcontractor certificate and endorsement tracking log, one renewal calendar, one incident and claim reporting procedure, and one loss-prevention plan, each dated and signed by the owner and reviewed by the broker and, where applicable, the bond producer.

B. Document Schedule (Component Schedule)

Document	Quantity	Format	Content Required	Preparation / Purpose
Policy and Bond Summary Register	1	Table, one to three pages	Carrier, policy or bond number, period, limits, deductible, classification, premium, audit basis, responsible person	The single controlling document referenced by every later chapter
Risk-Inventory Worksheet	1	Table	Every operation, vehicle, tool, employee category, location, and contract type against its exposure category	Basis for the broker's coverage recommendation
Certificate Request and Issuance Log	1	Log	Requestor, recipient, project, required endorsements, date issued	Controls accurate, non-fabricated certificate issuance
Subcontractor Certificate and Endorsement Tracking Log	1	Log	Subcontractor name, coverage type, limits, expiration, additional-insured status	Used in Chapter 16 subcontractor qualification
Renewal Calendar	1	Calendar or table	Policy, bond, and audit deadlines with advance-notice periods and responsible owner	Prevents unnoticed lapse
Incident and Claim Reporting Procedure	1	Procedure document	Emergency contacts, photograph and witness requirements, insurer notice steps	Used immediately after any incident or loss
Loss-Prevention Plan	1	Checklist or procedure document	Water shutoff, fire prevention, hot work, theft, ladder, tool, and occupied-home controls	Reduces claim frequency and severity

C. Information Takeoff

• Business model information: the approved service menu, jurisdictions, project-size range, and delivery method from Chapter 1, gathered before Step 1.
• Entity information: the exact legal name, ownership, and signing authority from Chapter 2, gathered before any application is submitted.
• Licensing information: the classifications and their mandatory insurance, bond, and financial-statement requirements from Chapter 3, gathered before Step 4.
• Operational information: current and planned employees, vehicles, tools, equipment, locations, and subcontracting arrangements, gathered before the risk inventory in Section E.
• Professional input: the licensed insurance broker, bond producer, and, where indemnity or tax treatment is involved, the attorney or CPA.

D. Acceptance Standards

Check	Standard
Risk inventory	Every operation, vehicle, tool, employee category, location, and contract type from the approved business model appears on the risk-inventory worksheet
Coverage and bond placement	Every mandatory and contract-driven coverage or bond identified in Section F is confirmed bound in writing by the broker or surety before it is marked active
Policy and bond summary	Every active policy and bond appears on the register with carrier, period, limit, deductible, classification, premium, and responsible person
Certificate integrity	Every issued certificate is logged, unaltered, and consistent with the underlying policy
Subcontractor tracking	Every active subcontractor's insurance status is logged with expiration dates and additional-insured confirmation
Renewal control	Every policy, bond, and audit deadline has an advance-notice period and a named responsible person
Incident and loss-prevention readiness	The incident reporting procedure and loss-prevention plan are complete and have been reviewed with field personnel
Professional review	The broker and, where applicable, the bond producer have reviewed the completed file and their comments are recorded and addressed before approval

E. Provide Business Information and Build the Risk Inventory

1. Provide the broker or advisor with the approved business model, service menu, jurisdictions, project sizes, payroll, sales, subcontracting, vehicles, equipment, and property. Deliver these items from Chapters 1 and 2 to the broker before the first coverage discussion.
2. Identify every legal entity, trade name, owner, qualifier, location, vehicle, trailer, tool, and operation requiring coverage review. List each item as its own row on the risk-inventory worksheet.
3. Create a risk inventory for injury, property damage, completed operations, water, fire, theft, vehicle, tool, employee, cyber, pollution, professional, and contractual exposure. Mark which exposure categories apply to each operation identified in the previous step.
4. Identify mandatory workers' compensation or approved exemption requirements. Record the jurisdiction's specific rule and the company's current employee count and classifications on the risk-inventory worksheet.
5. Identify general liability needs by operation, project type, customer, contract, and completed-operations exposure. Record the operations most likely to generate a liability claim and the completed-operations period the business will need after project handoff.
6. Identify commercial auto needs for owned, hired, non-owned, employee, rented, and trailer use. Record every vehicle and trailer by ownership type and typical use.

F. Identify Additional Coverage, Bonds, and Contractual Requirements

1. Identify inland marine, tools, equipment, installation floater, property, builders-risk, crime, cyber, employment-practices, umbrella, and other coverage for review. List each candidate coverage with the specific tool, equipment, or exposure it would protect.
2. Identify pollution, mold, lead, asbestos, roofing, excavation, hot work, water damage, design, or other exclusions that could affect the service menu. Cross-check each exclusion against the Chapter 1 service list and flag any conflict.
3. Identify contractual insurance requirements from planned customers, general contractors, lenders, and municipalities. Record any minimum limit, additional-insured, or notice requirement found in a template contract or expected customer agreement.
4. Identify additional insured, waiver, primary and noncontributory, completed operations, notice, and certificate requirements for professional review. List each requirement for the broker to confirm against available endorsements.
5. Identify license and contract bond requirements. Record the bond type and amount required by each licensing authority identified in Chapter 3.
6. Identify bid, performance, payment, maintenance, permit, subdivision, or other bond needs for planned work. Record which planned project types or customers are likely to require a project-specific bond.

G. Submit Applications and Assemble Documentation

1. Provide complete and accurate applications to carriers and bond providers. Submit the risk inventory and entity information from Sections E and F without alteration.
2. Do not omit subcontracting, hazardous work, vehicles, payroll, revenue, claims, or project types to reduce premium. Confirm every application matches the actual risk inventory before submission.
3. Obtain policy declarations, forms, endorsements, exclusions, schedules, applications, audits, invoices, and broker correspondence. File each document under its policy or bond in the company record system.
4. Create a policy summary with carrier, policy, period, limit, deductible, classification, premium, audit basis, and responsible person. Record each active policy as its own row on the Policy and Bond Summary Register.
5. Create a bond summary with surety, producer, obligee, amount, term, indemnity, renewal, and project conditions. Record each active bond as its own row on the same register.
6. Create a certificate-of-insurance request and issuance procedure. Record every requestor, recipient, and required endorsement on the certificate log before a certificate is issued.
7. Do not modify, fabricate, or misrepresent a certificate. Verify every issued certificate against the underlying policy before it is sent to a recipient.
8. Create a contract-insurance review checklist before signing agreements. List the coverage and limit confirmations required before any contract is executed.
9. Create subcontractor insurance requirements based on scope and professional advice. Record the minimum coverage and endorsement requirements for each subcontractor trade category.
10. Create a certificate and endorsement tracking log for subcontractors. Record each subcontractor's current certificate, expiration date, and additional-insured status on the subcontractor tracking log.

H. Renewal, Incident, Loss Prevention, and Approval

1. Create renewal reminders far enough in advance to prevent lapse. Record each policy and bond expiration date and the advance-notice period on the renewal calendar.
2. Create procedures for adding vehicles, employees, locations, operations, tools, equipment, and projects. Record the specific broker-notification step required before each addition takes effect.
3. Create an incident and claim reporting procedure with emergency contacts, photographs, witness records, preservation, and insurer notice. Assemble the incident and claim reporting procedure document with each required step in sequence.
4. Do not admit liability, promise payment, conceal facts, or destroy evidence after an incident. Add this instruction as a standing rule at the top of the incident and claim reporting procedure.
5. Create a loss-prevention plan for water shutoff, fire prevention, hot work, theft, keys, driving, ladders, tools, dust, occupied homes, and subcontractors. Assemble the loss-prevention plan with a specific control for each listed hazard category.
6. Create an annual insurance audit preparation file for payroll, sales, subcontract costs, classifications, and certificates. Record what documentation must be assembled before each policy's audit period.
7. Create an indemnity and personal-guarantee review requirement before executing bonds. Record that no bond indemnity agreement or personal guarantee is signed without attorney and CPA review.
8. Review all policies and bonds with qualified professionals and reconcile them with licenses and contracts. Confirm the completed Policy and Bond Summary Register matches the Chapter 3 licensing matrix and any executed contract requirements.
9. Identify uninsured, excluded, high-deductible, or self-insured risks requiring service limits, pricing, reserves, or contract controls. Record each identified gap and the operational response chosen: exclude the service, raise the price, hold a reserve, or add a contract limitation.
10. Update the service menu and project limits when coverage does not support planned work. Return to the Chapter 1 business model and remove or limit any service that cannot be supported by confirmed coverage.
11. Approve the insurance and bonding file and establish quarterly status reviews. Sign and date the completed Policy and Bond Summary Register and schedule the first quarterly review.
12. Archive proof of coverage while protecting confidential financial and underwriting information. Store the complete file in the Chapter 2 company record system with restricted access to underwriting financials.