Last week, a contractor I've known for 15 years called me out of the blue.
"John — my agent keeps telling me I'm covered. But I just signed a $2.3 million contract and something doesn't feel right."
I told him to send me his policy.
Ten minutes later, I found three problems that could have cost him the entire contract.
His agent wasn't lying. He just wasn't looking close enough.
And that's the real problem.
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YOUR POLICY ISN'T A SET-IT-AND-FORGET-IT DOCUMENT.
Most business owners treat insurance like a smoke detector — hang it up, forget about it, hope it works when you need it.
But policies have gaps. Endorsements take coverage away. Certificates say one thing while the policy says another.
And nobody catches it until there's a claim.
Here are the 5 sections most business owners never look at — but should.
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YOUR ADDITIONAL INSURED ENDORSEMENT FORM
Everyone checks whether they HAVE Additional Insured coverage.
Almost no one checks WHICH endorsement form they have.
That distinction can cost you a contract.
→ CG 20 10 covers ongoing operations only
→ CG 20 37 covers ongoing AND completed operations
If your contract requires completed operations coverage and you only have CG 20 10, you're in breach — even if your certificate says "Additional Insured."
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PER-PROJECT AGGREGATE LIMITS
Most General Liability policies carry one aggregate limit across ALL your active projects.
If a claim on Job A burns through your aggregate, Jobs B and C are now uninsured.
Per-project aggregates prevent that. Most contractors don't have them. Most agents don't bring it up.
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YOUR CERTIFICATE OF INSURANCE
Here's something most people don't know: your certificate is not your policy.
If your certificate lists a client as Additional Insured but your policy doesn't have the right endorsement backing it up, you're in breach of contract — even though you thought you were covered.
Always verify the certificate matches the actual policy language.
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EXCLUSIONS BURIED IN THE ENDORSEMENTS
Your declarations page says you have coverage.
Endorsement 47B quietly takes it away.
I've seen policies that appear to cover professional liability — until you read the fine print and find that the exact type of work your client does is specifically excluded.
The coverage that matters is what's left after the endorsements.
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YOUR AGENT'S E&O COVERAGE
If your agent made a mistake placing your coverage, their Errors & Omissions insurance is supposed to protect you.
But only if you can prove they made a mistake.
That means documenting every conversation, every request, every email — in writing. If you've only talked on the phone, you have no record.
Start creating one.
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WHAT WE FOUND IN MY CLIENT'S POLICY:
✗ Wrong Additional Insured endorsement (CG 20 10 instead of CG 20 37)
✗ No per-project aggregate
✗ Waiver of subrogation missing from his certificate
Fixing all three cost him $380 more per year.
Walking away from that $2.3 million contract would have cost him $1.3 million in lost revenue.
The math isn't complicated.
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YOUR ACTION ITEM THIS WEEK:
Pull out your General Liability policy and look for these five things.
If you don't know what you're reading, reply to this email and send it over. I'll tell you what's missing.
Better to find the gaps now — not during a claim.
John Crist
Founder, Prestizia Insurance
28 Years Protecting What Matters
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Want to audit your own policy — the right way?
This week, Protection Circle Insider members received:
✅ The 27-Point Policy Audit Checklist
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✅ "Read Your Policy Like an Underwriter"
A video walkthrough showing exactly where to look and what to flag
✅ The Endorsement Code Reference Guide
The exact forms to look for — and the ones that should raise a red flag
✅ A Certificate of Insurance Template
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✅ Monthly Live Q&A
Bring your specific policy. Get real answers.
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PLUS — this month's Insider war story:
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A real case. Real numbers. Real lesson.
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📖 Want to go deeper?
The Prestizia Protection Playbook covers the coverage gaps, contract requirements, and policy blind spots most business owners never see coming.
Available on Amazon → https://www.amazon.com/dp/B0GM94983Q
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P.S. — I read every reply to this newsletter. If you've got a policy question, a coverage situation you're unsure about, or something your agent told you that didn't quite add up — hit reply. I'll point you in the right direction.