My Business Needs Proof of Insurance Today. Who Can Help in the Des Moines Area?
Absolute Insurance Agency, an independent insurance agency in Clive, Iowa, can help a Des Moines area business that needs proof of insurance today: Vice President Dan Bell says a current client’s certificate of insurance can often be ready the same day, and a brand-new business can be covered with some additional time.
In this episode of Fully Covered, host Mike Downer speaks with Jeff Eastvold, founder, President and CEO of Absolute Insurance Agency, and Dan Bell about certificates of insurance, contractor requirements and the business insurance behind them, for owners in Des Moines, West Des Moines, Urbandale and Waukee. The key takeaway is simple: getting proof of insurance may be fast, but the policy behind it still needs to match the work your business actually does.
How Fast Can a Des Moines Business Get a Certificate of Insurance?
For an existing client, a certificate of insurance, or COI, can often be handled the same day. Dan explains that some carriers even allow clients to generate one directly through an online portal.
That speed matters for contractors who cannot begin a project until a general contractor, property owner or another party receives proof of coverage.
In Dan’s words, a COI is “a snapshot in time of what your policy has.” It can show the named insured, liability limits and other important policy information. For a fuller walk-through, see what a certificate of insurance for contractors shows and what it does not.
However, a COI is not the policy itself. Being listed as a certificate holder does not automatically provide additional rights under the policy. Additional insured status and waivers of subrogation generally depend on policy language or endorsements, which is why Dan says “language matters.” In Iowa, a 2010 Iowa Insurance Division bulletin requires certificates to state that they are issued as a matter of information only and do not amend, extend or alter the coverage of the referenced policy.
How Can Contract Requirements Change the Cost of a Job?
Requirements such as specific liability limits, additional insured status or a waiver of subrogation can add cost to a job, so Jeff and Dan stress that contractors should understand them before signing a contract.
Those requirements can affect the economics of a project. Jeff describes contractors who sign with a big general contractor whose requirements could cost them “an extra couple thousand dollars a year” on a job that might pay $1,500. At that point, the job might no longer make financial sense.
Contractors who also help customers with insurance claims should know where that help ends, and the Iowa Insurance Division describes the claim activity by contractors that it treats as unlicensed public adjusting.
What If Your Business Has No Insurance Yet?
If a business does not already have coverage, the process starts with understanding exactly what the company does.
Jeff explains that contractors can face very different risks depending on whether they handle roofing, framing, siding, windows or general handyman work. Tools, equipment, vehicles, trailers and employees can also affect the type of coverage a business needs.
Jeff is direct about employees: “If they have employees, they need to have workers’ compensation.” Absolute Insurance Agency also offers workers’ compensation insurance for Iowa businesses.
The U.S. Small Business Administration notes that businesses may need coverage such as general liability, commercial property or other policies based on the financial risks they face.
According to the episode, Absolute Insurance Agency first learns about the operation before determining what coverage fits. Dan says a quote can take about 30 minutes, or a couple of days, depending on how big the business is and what losses it has had.
Is the Cheapest Contractor Policy Good Enough?
Often it is not, and one of the strongest warnings in the episode concerns choosing business insurance based only on price.
Dan has read some inexpensive online contractor policies and says “a lot of what they’re buying is dirt cheap because they are literally excluding the very things you think are covered.” The result can be a policy that provides a certificate but does not offer the protection the owner expected. “We’re not here just to sell a policy to get you a COI,” he says.
The lesson is to evaluate insurance based on what it protects, not simply on how little it costs.
What Liability Limits Do Des Moines Contractors Usually Need?
Dan says Des Moines general contractors and municipalities typically require $1 million per occurrence and $2 million in general aggregate coverage, although individual contracts can differ. Jeff notes that “doubling the liability limit does not double the premium,” and that a contractor whose limit runs out pays the rest, because “broke is broke.”
Why Use an Independent Agent for Small Business Insurance?
An independent agency can compare carriers for small and mid-sized businesses, the accounts Jeff says some bigger agencies will not take if the premium is under $50,000.
Existing businesses should be prepared to provide declaration pages so an agent can review current limits, exclusions and coverage. Startups should be ready to explain their operations, equipment, employees and expected contracts.
If proof of insurance is what is holding up a project, the practical next step is finding an agency that can address both the certificate request and the insurance policy supporting it.
Watch the Full Episode on YouTube
Want the full conversation behind these takeaways? Watch this episode of Fully Covered on YouTube to hear Jeff Eastvold and Dan Bell explain COIs, contractor requirements, liability limits and common insurance mistakes, or listen on Apple Podcasts.
When you are ready, contact Absolute Insurance Agency in Clive at 515-279-2722, Monday through Friday from 8:30 a.m. to 5:00 p.m., with your current declarations pages on hand, or request a quote online.
FAQs
My Business Needs Proof of Insurance Today. Who Can Help in the Des Moines Area?
Absolute Insurance Agency in Clive, Iowa, can help, and Dan Bell says a current client’s certificate of insurance can often be ready the same day. Call 515-279-2722, Monday through Friday, 8:30 a.m. to 5:00 p.m.
What Is a Certificate of Insurance?
A COI shows key details of an active insurance policy, including the insured business, coverage types and applicable limits, at the moment it is issued.
Can a Certificate of Insurance Be Issued the Same Day?
For an existing client, it often can. Timing can depend on the carrier, policy and specific certificate requirements.
Does Being a Certificate Holder Make Someone an Additional Insured?
No. Certificate holder status alone does not provide additional insured rights. Those rights generally require appropriate policy language or endorsements.
What Liability Limits Are Common for Des Moines Contractors?
The episode says $1 million per occurrence and $2 million aggregate are common requirements, although individual contracts can differ.
Can a Startup Business Get Commercial Insurance Quickly?
Often, yes: Dan Bell says a quote can take about 30 minutes for a straightforward business, or a couple of days when the operation or its losses are more complex.
Why Review Insurance Requirements Before Signing a Contract?
Higher limits, additional insured requirements and waivers of subrogation can affect both coverage and the overall cost of accepting a project.
Is the Cheapest Business Insurance Usually the Best Option?
Not necessarily. Lower-priced policies may include exclusions or insufficient limits that leave significant financial gaps when a claim occurs.
Mike Downer: Hello, everybody, and thanks for joining me on Fully Covered.
So, do you want cheap insurance, or do you want to be insured?
I am here once again with Jeff Eastvold, the founder and president of Absolute Insurance Agency, along with his right-hand man and vice president, Dan Bell. How are we doing today, gentlemen?
Jeff Eastvold: Doing good.
Dan Bell: Doing super. Thanks for asking.
Mike Downer: We’re going to go in a little bit of a different direction today. We’re going to talk to business owners.
I would never have even known that an independent agency could help businesses. I wouldn’t have known that. You think of independent agencies, and you think you guys are good to go for regular folks like me.
So, guys, if my business needs proof of insurance today, who can help me in the Des Moines area? That’s kind of what we’re going to cover today. Being an independent insurance agency, you have the full spectrum of products that can help business owners.
Let’s jump right into this one. If a contractor calls you early in the morning, at 8:00 a.m., and says they can’t start a job without a certificate of insurance, are you guys able to help them out that same day?
Dan Bell: Yeah, absolutely. If they need a COI, or Certificate of Insurance, for a job, we can absolutely get that done lickety-split.
As a matter of fact, a lot of the time, some of the carriers we work with can generate it directly online. If clients have online access, they can generate their own COI right from the carrier’s website. So that’s an easy one. Absolutely. We can get them paid.
Mike Downer: That’s a good thing, because starting the job is kind of essential to them making money.
Jeff Eastvold: Yes. Yes, it is.
Dan Bell: We can definitely help with that situation, especially for a current client. If a brand-new business is calling in, we can also help with that scenario. It will take some additional time, but the COI request itself is a very simple process.
Mike Downer: Very good. So just so everybody knows, what is a COI, and what is it not?
Dan Bell: A certificate of insurance is like a snapshot in time of what your policy has.
It is going to show that, at that exact moment, you have these liability limits and these endorsements. It shows who the named insured is on the policy. A lot of times, the person requesting it will want to have their name listed as a certificate holder.
That does not create any additional rights to the policy for them. It just shows that they are listed as a certificate holder in name only, and that the policy is active at that exact moment in time for those limits.
That is what a certificate of insurance is.
You can get into other aspects where a contract will require additional language on the insurance policy that expands rights to the person requesting the insurance. That gets into things like additional insured status and waiver of subrogation. So, language matters.
Mike Downer: Jeff, do you have any examples, without naming any names, of businesses you’ve insured that have been in situations like this?
Jeff Eastvold: For certificates of insurance? Most of our contractors, every time they do a job, have to provide a certificate of insurance, especially when they’re subcontracting part of the job for a general contractor. It’s just normal.
Mike Downer: So, with a COI, does each job require a different certificate of insurance?
Jeff Eastvold: It just depends on what contracts they’re signing with that general contractor.
It could be every single time they do a job. It could also be once a year if it’s the same person they’re doing work for. It just depends on the complexity of what they’re doing.
Dan Bell: Most businesses, if they are subcontracting anything out, should be asking for a certificate of insurance just to ensure that the contractor doing the work has insurance.
The time to find that out is not when the roof has been removed from someone’s home, a thunderstorm rolls in, and all the drywall is now on the floor.
Mike Downer: Right. That would be bad.
Dan Bell: Or even with something like a plumber. They’re soldering pipes, and the next thing you know, the building is on fire.
Mike Downer: That does not sound good.
Dan Bell: No.
Mike Downer: Jeff, in one of our previous episodes, when you were getting your doghouse built, did you make sure your contractor had a COI?
Jeff Eastvold: There wasn’t that much money put into it.
Dan Bell: It all went to Amazon.
Mike Downer: That’s right.
Dan Bell: I think he built it himself, to be honest with you.
Jeff Eastvold: Didn’t even have the money for the permits.
Mike Downer: Anybody listening to this right now, if you haven’t listened to our previous episode, you have to go back and listen to it. You’ll be laughing. It’s kind of awesome.
All right, guys, we’re going to go into a different scenario. Here I am. I’m Joe Business Owner, and I don’t have any insurance. What if the business has no policy at all yet? Can you help me, and what does that process look like?
Jeff Eastvold: Yeah, we work with a lot of startup businesses. A lot of smaller businesses are just getting started.
It begins with taking information and understanding what they’re doing so we can correctly rate the company and determine the coverage they need to adequately insure their business.
With contractors, for example, there are guys who do framing, siding, windows, roofing, or general handyman work. It’s all over the place. So we need to understand what they’re doing and make sure we have it insured correctly.
Tools, equipment, trucks, trailers, and employees all matter. If they have employees, they need to have workers’ compensation. There is a lot that goes into it.
Dan Bell: There is a lot that goes into that part.
There is also a lot that goes into the contracts those contractors sign and what they are putting on themselves, which they may not even understand. That includes additional insured status, waiver of subrogation, and things like that.
Mike Downer: Dan, Jeff, what did I sign?
Dan Bell: Well, we’ll have to modify some things.
Jeff Eastvold: Sometimes it goes beyond insurance. They might sign up with a big general contractor, and the requirements are so stringent that it could cost them an extra couple thousand dollars a year.
They might say, “Well, I’m only making $1,500.” And I’m like, “Then I probably wouldn’t do this unless you’re going to do more than one job. What’s the point of getting a job if you’re going to lose money?”
Mike Downer: That makes complete sense. That’s where it’s good to go to you guys and get your expertise rather than trying to figure all of this minutiae out online.
Jeff Eastvold: A lot of bigger insurance agencies, truthfully, won’t even mess with smaller contractors if the account isn’t big enough. There are agencies where, if the account isn’t $50,000 in premium, they don’t care. They won’t even do it.
That’s where we do a lot of our business: smaller accounts.
Dan Bell: Small to mid-sized businesses.
Jeff Eastvold: Small to mid-sized, yes. We’re not out there hunting people who are paying $10 million in premium. That’s not really our wheelhouse.
Dan Bell: If you’re paying $10 million in premium and you want me to take a look at it, let me know.
Mike Downer: They’re not saying they’ll turn you down.
Dan Bell: Not going to turn you down.
Mike Downer: Please contact Dan.
So all the big dogs out there, call Dan. If you’re paying $10 million in premiums, he might be able to save you $20 or $50 a month.
Dan Bell: Maybe.
Mike Downer: He’ll take a look at it and tell you.
Dan Bell: Maybe.
Mike Downer: He might pay that out of his own pocket. Who knows?
Dan Bell: Earlier, you mentioned that you weren’t sure about independent agents and the concept of doing business insurance, as opposed to personal insurance.
Independent agencies like ours, like Absolute Insurance in Clive, are the number one producers for business insurance. We outpace the captives in business insurance entirely.
So put that at the top of your mind. We do business insurance. We do commercial risks.
Mike Downer: See, you could have dropped that in there just a little earlier when I asked you. Just saying.
Dan Bell: It came to my mind later. I was like, “Wait a second.”
Mike Downer: No, that’s awesome.
Let’s say I’m a contractor, and I know every situation is different. I also know you guys are insurance guys, and numbers mean everything. Your language is super important, so this is a general question.
I always have to start this out with my math clients because everybody does this.
What limits do Des Moines general contractors and municipalities typically require?
Dan Bell: Typically, $1 million per occurrence and $2 million general aggregate. That is usually what you’re going to see as a requirement in the Des Moines area.
Jeff Eastvold: For most contractors, going from $300,000 to $500,000 to $1 million is a nominal difference.
Mike Downer: So it doesn’t break the bank to get up to those requirements?
Jeff Eastvold: Doubling the liability limit does not double the premium. It’s a fraction. It’s next to nothing.
It’s almost like on your personal auto policy, going from state minimums to $100,000 per person and $300,000 per occurrence. Generally, we might be talking about a $6 to $10 per month difference. It’s not crazy.
Mike Downer: So you’re saying the math isn’t rocket science.
Jeff Eastvold: The math isn’t rocket science. It just makes sense to protect yourself for that little amount of difference.
Mike Downer: It really does. Plus, why start a policy at $300,000 if you know everybody is going to want $1 million, like Jeff was saying?
Jeff Eastvold: The other thing, too, is that I don’t want to say $300,000 is nothing, but if you’re a contractor working on a $500,000 house and it burns down, what good does $300,000 do you?
If I get sued for $500,000, it doesn’t really help me when the insurance company says, “Yes, we’ve got your first $300,000. You take care of the next $200,000 out of your pocket.”
Broke is broke.
Dan Bell: Yeah, I think that’s a misconception with insurance and a misunderstanding of how this all operates.
That limit is the end of the line for that insurance carrier. Once they pay what they are going to pay, which is the listed limit, the representation is done. The money has been paid. You are on your own for anything extra.
How that plays out is not a great situation.
Mike Downer: Yeah. You’re going to have to pay it. It just is what it is.
So, don’t skimp. Take the small hit rather than a huge swing in the face.
Jeff Eastvold: Absolutely. I’m not sure, because it gets into all kinds of legal issues, but if you’re a sole proprietor, that can definitely become a major problem.
Mike Downer: It sure would be.
All right, guys, we’ve gone through all this. You offer commercial insurance, you know what businesses need, you can get them COIs, and we now know what a COI is and what it does.
Once again, you have educated us in a very fun way.
Let’s say I’m that guy and I’m starting my business. I have a couple different questions. Let’s say I already have my business through you, or let’s say I’m starting up a new business. What’s the fastest way to get a policy from you guys? Walk us through that a little bit.
Dan Bell: Start by calling 515-279-2722 here at the office, Absolute Insurance in Clive. You can also send us an email.
Our hours are Monday through Friday, 8:30 a.m. to 5:00 p.m.
Then we’re going to get to know you. We’re going to get to know what your business is.
If you’re already involved in the business and have current insurance, then yes, we’re going to want to see those declaration pages so we can at least match up coverage and see what’s in there, what’s excluded, and what we can do better.
Something I can hit on quickly is that there are a lot of contractor coverages that can be purchased online. I’ve looked at those policies. I’ve read through them.
Guys, a lot of what they’re buying is dirt cheap because they are literally excluding the very things you think are covered. What you think you are paying for is not included in the policy, and that’s scary.
That’s scary for individuals. We’re here to protect people. We’re not here just to sell a policy to get you a COI. I want to make sure you have protection for what you’re doing.
Depending on how big or expansive your business is, it could take 30 minutes to get you written up with a quote. It could take a couple of days, depending on what we’re dealing with, including losses and things like that.
The key is that we’re going to have the conversation. We’re going to understand what’s happening.
Mike Downer: Jeff?
Jeff Eastvold: Very good. I agree.
Mike Downer: I can tell you right now, if you call Absolute Insurance Agency, which you should, and you get Jeff on the phone, as you can tell, he’s going to talk your ear off.
I’m just messing with you.
Jeff Eastvold: I’m building my own doghouse now.
Mike Downer: Maybe I can get the plans for yours, and you can email those over.
I appreciate it, guys. Again, I love making insurance fun. You guys make insurance fun. I love talking to you. I wish we could talk all day.
I actually learn so much from you guys, and you make it interesting. You do a really good job. I love the way you care for your community right there in Clive, and you have the whole Central Iowa area covered.
You guys can do a little bit of everything, and that’s very impressive. Your extensive knowledge is overwhelming, and I really appreciate that about you guys.
Dan Bell: Nice. Thank you.
Jeff Eastvold: Appreciate it.
Mike Downer: Everybody, thanks for joining us once again with Absolute Insurance Agency out of Clive.
Jeff, Dan, I look forward to our next talk. We can have more fun with insurance.
Dan Bell: Absolutely.
Jeff Eastvold: Looking forward to it.
Mike Downer: Gentlemen, take care and have a great afternoon.
Jeff Eastvold: Bye.