Usually no. Most bid packages require the insurance to be in place at award or before you start work, not when you submit the bid. What the bid often does require at submission is proof that you can get the coverage, usually a short letter from your broker or a certificate showing what you carry today. Who this is for: contractors deciding whether to spend money on coverage for a job they have not won yet.
The short version
- You almost never need to buy new coverage before you bid. You need it before you start work.
- Bid packages often want a broker letter saying the required coverage is available to you if you win.
- Your current certificate of insurance is usually enough to show what you carry now.
- Get a real quote before you bid so the price is in your number. Bind it when you win.
- Read the instructions to bidders. A few public bids do want a certificate with the bid.
What does the bid package ask for at submission?
The instructions to bidders list what goes in the envelope or the upload. Insurance shows up there in one of three forms, and only one means buying anything.
| Document | What it is | When it is usually due | Do you have to buy anything? |
|---|---|---|---|
| Current certificate of insurance | A one page summary of the policies, limits, and dates you have today | With the bid | No. It shows what you already carry. |
| Broker letter (sometimes called evidence of insurability) | A letter from your broker saying the required coverage is available to you if you win | With the bid | No. It is a statement, not a policy. |
| Bid bond | A promise that you will sign the contract if you win. It comes from a surety company, not your insurer. | With the bid, mostly on public work | Yes, a small fee, and it is not insurance |
| Certificate meeting the contract | A certificate made out to the owner showing every required limit and every required endorsement (a change added to your policy) | Within about ten days of award, and before you start work | Yes, if your current policies fall short |
What is a broker letter and how do I get one?
A broker letter is one page on your broker's letterhead. It says who you are, what you carry today, and that the extra coverage the bid requires is available to you at award. Owners ask for it so they do not award a job to someone who cannot get insured.
Send your broker the insurance section of the bid and the due date. A broker who works with contractors will usually write one at no charge. Allow a day or two, because a letter about coverage you do not carry yet often needs a word from the insurer first. If your broker will not write one, that is a sign the coverage may be hard to get for your trade, and you should find out why before you bid.
Why get a quote if I do not have to buy?
Three reasons, and only the first is obvious. The price belongs in your bid. Some requirements are hard for some trades: roofers, demolition crews, and anyone working at height can struggle to find a $5,000,000 umbrella at a sane price. And a quote is usually held for thirty to sixty days, as long as nothing changes. It is subject to the insurer's final underwriting, so a new claim, a bigger payroll, or a different scope can move the price. Ask how long yours holds.
When do I actually have to buy it?
- Notice of award. Call your broker the same day and say bind it. This is when the clock starts.
- Contract signing. Many contracts want the certificate and endorsements within ten days of award. Some owners will not release the contract without them.
- Before mobilization. Nobody goes on site until the owner accepts the paperwork. This is the true deadline.
Most endorsements are added in one to three business days. An umbrella quoted before the bid is usually bound in one to five. If nothing was quoted in advance, add a week or two. See how quickly you can get the required insurance after winning a bid.
Are there exceptions?
- Prequalification programs. Some owners and large general contractors screen contractors before they may bid at all, and the screen includes minimum insurance you must already carry.
- Bonds. A bid bond is due with the bid on most public work. It is not insurance, but it takes time to set up with a surety, so start early. See surety bond or insurance.
What if I buy the coverage and then lose the bid?
You can usually cancel, but not always for a full refund. Standard policies often refund the unused part. Specialty policies, the kind many contractors are placed in, commonly keep a minimum earned premium, often about a quarter of the year's price, plus taxes and fees that are not refunded. Ask what applies to your policy before you buy early. For the full list of what you will need once you win, read what insurance will I need if I win this bid.
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 landscaping contractor in California with seven employees bids $140,000 on a school district irrigation project. The instructions to bidders ask for "evidence of insurability" for everything in the general conditions, which include a $2,000,000 umbrella he does not carry.
What went wrong: He read that as "buy the umbrella before you bid," and was about to pay for a policy on a job he had a one in five chance of winning.
What it cost: His broker wrote a one page letter the next morning at no charge. He lost the bid. The umbrella would have cost roughly $1,600 a year, illustrative, and on a specialty policy a quarter of that is commonly kept even if you cancel.
The fix: Evidence of insurability means "show us you can get it," not "buy it." Get the quote so the price is in your bid, get the letter, and bind when you win.
Frequently asked questions
Q: Do I need to buy the required insurance before submitting my bid?
Usually not. Bid packages require the coverage at award or before you start work. At submission they typically want a current certificate or a broker letter saying the required coverage is available to you.
Q: What is evidence of insurability?
A letter from your broker stating that the coverage the bid requires is available to you if you win. It is one page and usually free. It is not a policy, and it binds nothing.
Q: Can I use my current certificate with the bid?
Yes, when the instructions ask for a certificate of existing insurance. If your limits are below the requirement, pair it with a broker letter covering the gap.
Q: How long after award do I have to get the coverage?
Many contracts say ten days from award or by contract signing, and always before you start work. Ask your broker to bind the day you get the notice of award, not the day the certificate is due.
Q: What if I buy it and do not win?
You can cancel, but a specialty policy commonly keeps a minimum earned premium, often around a quarter of the yearly cost. That is why you get a quote and a letter before the bid and buy after award.
Q: Do public bids ever require the insurance up front?
A few require a certificate of your existing coverage with the bid, and prequalification programs require minimum coverage before you may bid at all. Read the instructions to bidders.
How Morrow helps
Morrow is a licensed independent commercial insurance brokerage that works with contractors and trades every day. Writing broker letters for bids, pricing the coverage so it lands in the bid, and binding it the day of award is a routine part of how we work with contractors.
- 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.