No. On almost every construction bid, you prove the required insurance at award or before you mobilize, not when you submit the bid. What a bid package often asks for at submission is a letter from your broker saying the coverage is available to you, or a sample certificate, and both are free. Who this is for: contractors bidding a job whose insurance section asks for more than they carry today.
The short version
- You buy or change coverage after award and before you start work, not before you submit the bid.
- Many bid packages ask for a broker letter or a sample certificate at submission instead of the real thing.
- Get quotes before you bid anyway. That puts the cost in your price and makes the fix ready to trigger.
- Do not cancel or shrink any current policy on the chance you win.
- A change to a policy you already have takes one to three business days after award. A brand new policy can take up to two weeks.
When do I have to prove I have the insurance?
A bid has stages, and each asks for something different. The real proof comes late. The homework comes early.
| Stage | What is usually required | What it proves |
|---|---|---|
| Bid submission | Often nothing. Sometimes a broker letter or a sample certificate of insurance (a one page summary of your policies, limits, and dates) | That you can get the coverage if you win |
| Notice of award and contract signing | A real certificate made out to the owner or general contractor, plus copies of the endorsements (changes added to your policy) | That the coverage is bought and in force |
| Before you mobilize | An approved certificate, and sometimes policy pages | The person who approves certificates for the owner has signed off |
| During the job | A fresh certificate whenever a policy renews | Coverage never lapsed |
| After the job | Proof that your coverage keeps protecting them after the job is finished, for the years the contract names | Claims that show up later are still covered |
Read your instructions to bidders. If they ask for a broker letter or a sample certificate, involve a broker before bid day. Public bids ask most; see certificates for government contracts.
What is the broker letter some bids ask for?
It is often called a letter of insurability. On the broker's letterhead, it says the broker has read the bid's insurance requirements and that coverage meeting them is available to you if you win. It names the limits and wording the bid asks for.
It is not a policy or a promise from an insurance company. To write one honestly, the broker needs your current policies and a quote for anything you do not carry. That is the reason to start before bid day. The letter is free.
A sample certificate works the same way. It is marked "for bid purposes only" and shows the limits you would carry after award.
Should I get quotes before I bid even if I am not buying yet?
Yes, and for three reasons.
- Price. If a $2,000,000 umbrella (a second layer of coverage above your other liability policies) runs an illustrative $1,500 to $4,000 a year, depending on your trade, payroll, state, and claims history, that belongs in your bid, not in your margin.
- Timing. A quote in hand can usually be bound in a day or two. Starting from zero after award can take weeks for some trades.
- Surprises. Some insurance companies will not offer certain limits or wording to certain trades. Better to learn that now.
Quotes do not stay open forever. Many hold about 30 days. Ask whether each one can be refreshed if the award drags on.
What can go wrong if I wait until after I win?
| What you need after award | Usual time to get it | What happens if you have not started |
|---|---|---|
| An endorsement, such as adding the owner to your liability policy | 1 to 3 business days | Usually fine |
| A higher general liability limit with your current insurance company | A few days, if they offer it | Some will not go higher for your trade |
| A new umbrella | 1 day to 2 weeks | Start date can slip a week or more |
| A new general liability policy for a hard-to-place trade (roofing, demolition, work at height) | 1 to 3 weeks | You may miss your notice to proceed |
Many subcontracts give you a short window after award, often 10 days or less, and some want the certificate before you sign at all. Read yours. See when requirements exceed your policy if the bid asks for more than you carry.
What should I not do while I wait to hear?
- Do not cancel or reduce a current policy. A gap in coverage is a red flag to insurance companies and to the owner.
- Do not buy a one job policy before award. If you lose, you may owe a minimum earned premium, the part of the price the insurance company keeps if you cancel early. See minimum earned premium.
What this looks like in real life
Illustrative example. It is typical of what we see and is not a promise of how any specific situation would be handled.
The setup: A painting contractor in Florida with six employees bids a $210,000 condo repaint. The bid asks for $2,000,000 per occurrence general liability and a $2,000,000 umbrella. She carries $1,000,000 and no umbrella.
What went wrong: Nervous about losing the job over insurance, she buys the umbrella the week before bid day. She does not win. Forty days later she cancels it.
What it cost: Illustrative figures: the umbrella was $1,900 a year with a 25 percent minimum earned premium. The insurance company kept $475 plus a $75 policy fee, about $550 for coverage she never needed.
The fix: A quote and a free broker letter would have satisfied the bid. She could have bought the umbrella in a day or two after award, and paid nothing when she lost.
Frequently asked questions
Q: Do I need to buy the insurance before I win the bid?
No. You prove the required coverage at award or before you start work. Many bids ask only for a broker letter or a sample certificate at submission, and a broker provides either for free.
Q: What is the letter from my broker that some bids ask for?
It is a short letter saying the broker has reviewed the requirements and that coverage meeting them is available to you. It is not a policy. To write it honestly, the broker needs your policies and a quote for anything you do not carry.
Q: Can I submit my current certificate even though it does not meet the bid?
Yes, if the bid only asks for evidence of current coverage. Never alter a certificate to show limits you do not have. Ask your broker for a sample certificate marked for bid purposes.
Q: How long after award do I have to get the insurance in place?
Many subcontracts give you a short window, often 10 days or less, and some want the certificate before you sign at all. Read yours, then have quotes ready before you bid.
Q: What if I win and my insurance company will not add what the bid needs?
A broker can place the missing piece with another insurance company, often a second layer above your current policy. Quotes before bid day tell you early who will and will not write it.
Q: Does a bid bond count as insurance?
No. A bid bond is a promise to the owner that you will sign the contract and provide the final bonds if you win. A surety company issues it based on your credit, your finances, and your track record. It is a separate requirement from the insurance section, and many public bids want both.
How Morrow helps
Morrow is a licensed independent commercial insurance brokerage that works with contractors and trades every day. Lining up quotes and a broker letter before bid day, so a contractor can bid now and buy only if they win, is a routine part of what we do.
- Free contract review. Send us the contract or bid documents and we mark up the insurance section in plain English, whether or not you buy anything from us.
- Free, instant certificates. Clients issue their own certificates of insurance online in about a minute, any hour, any day, at no charge.
- Markets you cannot reach online. One application, shopped across many insurance companies for general liability, workers comp, auto, umbrella, and pollution coverage.
One more thing. This article is general information and is not legal advice or a statement of coverage. Your contract and your policy wording control in every case. Requirements vary by customer, by state, and by insurance company, so have a licensed advisor review your own contract and your own policy before relying on any of it.
Last updated: Reviewed by the Morrow commercial lines team. Last updated September 2026.