Contractors who work with property managers are often asked for more than a basic certificate of insurance. Depending on the company and the work being performed, the requirements may include general liability insurance, Workers' Compensation when required, Additional Insured status, and specific policy endorsements.
These requirements are part of the risk controls that allow a property manager to send contractors into rental properties, including occupied homes. At PMI James River, vendor qualification takes place before a contractor is assigned work. We review licensing and insurance requirements, require a vendor agreement, and verify required insurance documentation before contractors perform work in occupied properties.
If you are interested in working with us, our PMI James River Vendor Resources page explains the broader vendor relationship. Contractors who specifically want to understand our Additional Insured requirement can also review why PMI James River requires Additional Insured status.
Key Takeaways
- Commercial General Liability coverage is a core insurance requirement when working with a property manager.
- Virginia Workers' Compensation requirements depend on the contractor's actual business and staffing structure, including certain subcontractor relationships.
- Virginia does not provide a Workers' Compensation waiver or exemption form for a sole proprietor simply because coverage is not otherwise required.
- Additional Insured status, waiver of subrogation, and primary and noncontributory wording are separate insurance concepts.
- A certificate of insurance is evidence of insurance. It does not create coverage or replace the policy and endorsements.
- Contractors should involve their insurance agent early rather than waiting until a job is ready to begin.
In This Guide
- General Liability and Workers' Compensation
- Additional Insured Status
- Waiver of Subrogation
- Primary and Noncontributory Coverage
- What a Certificate of Insurance Actually Shows
- What PMI James River Reviews Before Work Begins
- Why These Requirements Matter
General Liability and Workers' Compensation
Commercial General Liability insurance is a basic part of contractor risk management. Subject to the terms, limits, exclusions, and conditions of the policy, it can provide protection when a contractor's operations result in covered third-party bodily injury or property damage claims.
Workers' Compensation requires a little more explanation because the requirement is not simply based on whether someone calls themselves a sole proprietor, independent contractor, or subcontractor.
The Virginia Workers' Compensation Commission states that an employer who regularly employs more than two part-time or full-time employees generally must carry Virginia Workers' Compensation coverage. When a business hires subcontractors to perform the same trade, business, or occupation, or to fulfill a contract of the business, employees of those subcontractors may also count toward the total.
This is important for contractors because a business with one direct employee can still have Workers' Compensation obligations if it uses subcontractors whose employees must be included in the statutory count.
Virginia also does not have a general Workers' Compensation waiver or exemption form for sole proprietors. A sole proprietor who is not legally required to carry coverage may be in a different position from an employer that is required to carry it, but that does not create a Virginia waiver form that substitutes for the underlying coverage analysis.
The Commission's contractor guidance also advises contractors to maintain proof of coverage for subcontractors. It notes that some contractors require subcontractors and independent contractors to obtain coverage voluntarily even when those businesses would not otherwise be required by law to carry it.
For vendor onboarding, PMI James River reviews the contractor's actual business structure and insurance documentation. A statement that a company is a sole proprietorship or uses independent contractors is not, by itself, a substitute for determining what coverage applies.
Additional Insured Status
An Additional Insured endorsement can extend specified protection under a contractor's liability policy to another person or organization. The exact scope depends on the policy and endorsement language.
For contractors working with PMI James River, the entity to be listed when Additional Insured status is required is:
James River Property Investments, LLC, dba PMI James River
1806 Summit Ave., Ste. 300-113
Richmond, VA 23230
Additional Insured status does not transfer ownership of the contractor's policy to PMI James River, and it does not guarantee coverage for every possible claim. The policy terms and endorsement determine what protection is actually provided.
This is also why we do not treat a certificate that merely lists PMI James River as a certificate holder as the same thing as evidence that the requested Additional Insured endorsement exists. Contractors should ask their insurance agent to provide the actual documentation required for the policy.
For a deeper explanation of this requirement, see why contractors are asked to name PMI James River as Additional Insured.
Waiver of Subrogation
A waiver of subrogation is different from Additional Insured status.
Subrogation generally refers to an insurer's ability, after paying a covered loss, to pursue another party that may be responsible for that loss. A waiver can limit that recovery right when the applicable contractual and insurance requirements are satisfied.
IRMI's discussion of Additional Insured status and waivers of subrogation explains why the two devices should not be treated as interchangeable. Additional Insured status can provide access to coverage under another party's policy, while a waiver of subrogation addresses an insurer's ability to seek recovery after a loss.
PMI James River prefers appropriate waiver of subrogation protection when it is available and applicable to the vendor relationship. Contractors should have their insurance agent confirm whether the requested wording can be provided under their policies. Availability, forms, and any carrier requirements can vary.
Primary and Noncontributory Coverage
Primary and noncontributory wording deals mainly with how applicable insurance policies may respond in relation to one another.
In general terms, "primary" addresses which coverage is intended to respond first, while "noncontributory" addresses whether another applicable insurer is expected to contribute alongside it. These provisions do not determine who was negligent, increase a policy limit, or create coverage for a claim that the policy does not otherwise cover.
The details matter. An American Bar Association review of primary and noncontributory provisions explains that priority questions can depend on the language of the applicable policies and endorsements and, in some situations, on contractual requirements referenced by those policies.
PMI James River prefers primary and noncontributory treatment when it is available and appropriate. The contractor's insurance agent should confirm the endorsement or policy language rather than assuming that Additional Insured status automatically provides the requested priority of coverage.
What a Certificate of Insurance Actually Shows
A certificate of insurance is useful evidence that insurance policies have been issued, but the certificate itself is not the insurance policy.
Virginia law makes that distinction explicit. Under Virginia Code § 38.2-518, a certificate of insurance is a statement or summary of coverage. A certificate cannot confer rights beyond the referenced policy or extend, amend, or alter the coverage provided by that policy.
That is why an onboarding request may include both a certificate of insurance and supporting endorsements. The certificate provides a useful summary. The endorsement or policy language is what establishes the requested Additional Insured or other coverage provision.
What PMI James River Reviews Before Work Begins
Insurance is part of vendor onboarding, not paperwork that we wait to address after a contractor has already been dispatched.
Before assigning work, PMI James River may review items such as:
- Active Commercial General Liability insurance
- Workers' Compensation coverage when required under Virginia law or the applicable vendor requirements
- Additional Insured status for PMI James River when required
- Requested certificates and policy endorsements
- Accurate information about employees and subcontractor use
- Appropriate contractor licensing for the work being performed
- A completed PMI James River vendor agreement before work is performed in an occupied rental
- Updated insurance documentation when policies renew or change
We do not bypass these controls simply because a repair is urgent, a contractor was recommended by an owner, or the vendor has performed similar work elsewhere. If a contractor is going to work through PMI James River, the vendor must meet the applicable onboarding requirements.
Addressing these items early makes the relationship easier for everyone. A contractor who sends the requirements to an insurance agent during onboarding is less likely to encounter preventable documentation delays when a work opportunity becomes available.
Why These Requirements Matter
Property managers coordinate work at properties they do not personally own, and the property may be occupied while the contractor is performing that work. That creates a different operating environment from a contractor working directly for a homeowner on a one-time project.
Clear vendor requirements establish who is performing the work, whether the contractor is appropriately qualified, and what insurance documentation must be in place before access is coordinated. They also make it easier to maintain a dependable vendor network for future assignments.
Insurance requirements do not replace good workmanship, safe practices, licensing, accurate estimates, communication, or proper documentation. They are one part of the broader vendor controls needed to manage repair work responsibly.
Frequently Asked Questions
Does a sole proprietor need Workers' Compensation insurance in Virginia?
Not necessarily. Virginia generally requires Workers' Compensation coverage when an employer regularly employs more than two employees, but the analysis can also include employees of subcontractors in certain contractor relationships. Virginia does not provide a general waiver or exemption form for a sole proprietor who is not required to carry coverage. Contractors should evaluate their actual staffing and subcontractor structure rather than relying solely on their business label.
Is a certificate of insurance enough to prove Additional Insured status?
Not necessarily. A certificate summarizes insurance information but does not extend or amend the underlying coverage. When Additional Insured status is required, the applicable endorsement or policy language is important.
Is a waiver of subrogation the same as being an Additional Insured?
No. They address different issues. Additional Insured status can extend specified protection under another party's liability policy. A waiver of subrogation concerns an insurer's ability to pursue recovery after paying a loss.
Does primary and noncontributory wording mean PMI James River's own insurance could never be involved?
No. The actual outcome depends on the policies, endorsements, facts of the claim, and applicable law. Primary and noncontributory language addresses priority and contribution between applicable coverages. It should not be read as a guarantee about how every future claim will be handled.
Work With PMI James River
If you are a contractor interested in working with PMI James River, address the insurance requirements early in the onboarding process. Send the requirements to your insurance agent, ask the agent to confirm what your policies can provide, and return the requested certificates and endorsements with your vendor documentation.
You can review our broader expectations and start the process through the PMI James River Vendor Resources page.
Published: November 1, 2024
Updated: August 21, 2026
