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this is John Sadler and welcome to our video on how to properly collect certificates of insurance from insured subs notice the use of the word properly this is important because if you make a small mistake in this area you wont likely find out about it until your audit and by that time it may be too late for you to go back to your sub to either get the mistake corrected or to deduct or withhold the proper amount to recoup your cost once youve paid your sub in full you lose leverage in these situations unless the sub continues to do work for you the end result is that you could be out of pocket for thousands of dollars in unnecessary and unexpected expenses so what is a certificate of insurance anyway its nothing more than a standard form used by the insurance industry that provides a brief summary of coverage as of the date that the certificate is issued by an insurance agent it indicates information such as policy type limits effective and expiration dates name of insurance carrier