Why procurement teams ask
A large client takes on risk every time it brings in a vendor. If your service fails or your systems are breached, the loss can land on them first, and insurance is the way they check that you can stand behind your work. The requirement is rarely personal. It is a standard step in vendor onboarding, and it often has to be completed before the first invoice is paid.
The lines that technology vendors usually need
For software, data and services companies, the most scrutinized coverage is not general liability. It is the policy that responds when your product or service causes a client financial loss, and the policy that responds when you suffer a data breach.
- Technology errors and omissions or professional liability, for claims that your work failed or was negligent.
- Cyber liability, for breach response costs and liability from a security incident.
- Commercial general liability, for bodily injury and property damage.
- Workers compensation, where you have employees on site or as required by state law.
Limits and endorsements
Contracts state minimum limits for each line, and larger clients often ask for more than a new company carries. If the required limit exceeds your current program, discuss it with your broker before you sign, since raising limits is a policy change and not something a certificate can fix. The same applies to endorsements such as additional insured status, which the client may require for general liability.
Keeping the certificate current
Client risk teams usually track expiration dates and will request updated certificates at renewal. Make a habit of asking your broker to send fresh certificates to major customers as soon as a renewal binds, so that a lapse on paper never interrupts a contract.
Last updated October 22, 2026. Written by the Alton Risk placement team.