Short answer
A good broker does more than sell the policy. A broker contract review should cover the insurance section of your contracts, flag requirements your policies don’t meet and handle certificates. It is not legal advice. Send contracts before you sign, so gaps show up while you can still fix them.
What should a broker contract review include?
A client told us they wanted “a broker who can periodically review our contracts and provide guidance on insurance requirements and compliance.” That is a fair expectation, and we do it. A broker contract review typically covers:
- The insurance section and any exhibit
- Required limits and which policy each one applies to
- Indemnity and defense language that may conflict with your coverage
- Whether the named insured matches the signing party
A review doesn’t replace your attorney. We point out where a clause may conflict with your coverage, and your attorney handles the contract wording. Our guide to the insurance section of your contract explains the common clauses.
Do you need to ask your broker each time?
An office administrator asked us: “So, we need to ask you each time for this? Or when we share insurance requirements, you are looking out for it?” The answer is to send the contract, and we review it. If we can’t meet a requirement or something is missing, we let you know.
Sending the contract before you sign gives everyone time to solve a problem.
What should you send your broker, and when?
Send your broker anything that could change your coverage:
- Contracts, before you sign
- New services, such as inspection or construction management
- Work in a new state
- New hires or a new office
- Big projects or unusual project types
Reporting changes early lets your broker adjust your policies before a gap appears.
How should certificate checks work?
A certificate should match your contract. Check that the named insured and any DBA match the signing party. Confirm the endorsements the contract requires, such as additional insured status, appear as the contract describes. Turnaround depends on the request, so send certificate requests early. Our certificates page explains how to request one.
What belongs in an annual review?
Once a year, compare your limits with the contracts you signed. A firm may have taken on higher requirements, new project types or new services since the policy was bought. An annual policy review catches those gaps at renewal, when changes are easier to make.
Example: a growing firm with new contracts
Consider a hypothetical engineering firm that signed several contracts during the year. At renewal, it sends them to its broker. The broker finds that two contracts require higher limits than the firm carries and one asks for wording on a policy that doesn’t support it. The firm fixes all three at renewal instead of mid-project.
What to look for in a broker
- Reviews your contracts before you sign
- Tells you what can and can’t be met
- Handles certificates accurately
- Checks your policies against your contracts yearly
- Stays clear about what is insurance guidance and what is legal advice
Send us a contract for a check to see how we work.
Related questions
Should my broker review my contracts?
Many growing firms expect it. Ask what your broker’s review includes and when to send documents.
Is a contract review legal advice?
No. A broker reviews the insurance requirements. Your attorney advises on the legal wording.
When should I send a contract to my broker?
Before you sign. Early review leaves time to solve any gap.
How often should I review my coverage?
At least yearly, and whenever you add services, states or larger contracts.