Why Canadian Clients Ask Newcomers for Proof of Insurance Before You Start
A certificate of insurance is a one-page document your broker issues, proving to a client that a policy actually exists. Here’s what it costs you in time and admin, and what not having one costs you in lost work.
The cost of not having a policy yet: the contract
Plenty of Canadian clients, especially larger companies and anything touching construction, consulting on-site or access to someone else’s premises, simply will not sign a contract without proof of coverage in hand first. Canadian clients ask newcomers for proof of insurance so consistently because of their own risk management: if something goes wrong on a job, the client wants to know there’s a policy standing behind it rather than only your word. Arrive at a contract negotiation with no policy in place, and the cost isn’t a dollar figure — it’s the deal itself, or a delay long enough that the client moves on.
The cost in time: getting the certificate issued
How long a certificate of insurance takes to issue depends heavily on whether the underlying policy already exists. If you’re already insured and simply need a certificate naming a new client, a broker can often turn that around quickly — sometimes the same day. If you’re arranging the policy itself from scratch because this contract is what prompted you to get covered at all, budget real time: underwriting, paperwork and a new-to-Canada business with no local claims history all add days you don’t want to be losing against a client’s start date. Ask your broker directly, before you need it urgently, how fast they can move.
The cost of getting “additional insured” wrong
Clients frequently ask to be named as an “additional insured” on your policy rather than just receiving a certificate that confirms it exists. So what is additional insured status on a policy? Practically, it’s the client being added as a party the policy also protects for claims arising from your work — a step beyond simply proving you’re covered. Getting this endorsement added is usually straightforward for a broker to arrange, but it’s not automatic, and asking late can cost you the turnaround time you don’t have.
The cost of a lapse mid-contract
A cover lapse mid-contract is the scenario worth building your renewal reminders around. A missed premium payment or an expired policy during an active job leaves you working uninsured, in breach of whatever coverage clause is in your contract, and potentially personally exposed if a claim happens to land in that gap. Clients who required proof up front sometimes also require ongoing proof through the life of the contract — set your own calendar reminder well ahead of the renewal date rather than relying on the insurer to catch you before it lapses.
The actual first step
How you get a certificate of insurance for a client starts with a phone call or email to your own broker, naming the specific client and what they’ve asked for — most brokers have done this hundreds of times and can tell you immediately whether your existing coverage already qualifies. A newcomer with no prior Canadian broker relationship should build this into the very first weeks of setting the business up, well before the first big client asks.
Cape2Canada’s guides stay on the immigration side of the move; for the actual policy, certificate and endorsement, a broker licensed in your province is who you want on the phone.