Attention Contractors and Subs: New Law Governing COI’s

Effective April 7, 2015, Massachusetts has approved Chapter 175L, which regulates certificates of insurance for the first time.
The new statute governs the way Certificates of Insurance are requested, required, prepared and issued with implications to Insureds and Certificate Holders: especially General Contractors and Subcontractors.

The purpose of the new Act is to make statutorily clear that insurance certificates
DO NOT and CANNOT modify the terms or conditions of the underlying insurance policies they evidence.

The terms of the statute are as follows

• A COI is NOT a policy of insurance. A certificate may not “amend, extend or alter the coverage afforded by the policy it evidences.”
• The law bars anyone from knowingly preparing, issuing, requesting or requiring any false or misleading information in the certificate..”
• Cancellation notice is governed by the underlying policy and MAY NOT be altered by a certificate of insurance.
• COI’s issued in violation of the new Chapter 175L shall be NULL and VOID.
• The commissioner of insurance has the right to investigate the activities of any issuer or requester they believe is in violation of the act and to impose a $500 fine per violation!

CLICK HERE to read the new Chapter 175L in it’s entirety.

Our goal is to keep you informed of any insurance news that may impact your business. Please contact your McSweeney & Ricci Account Manager with any questions you may have.


McSweeney & Ricci Insurance Agency, Inc.

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