Why Prequal Is the Best Time for Policy Review

The earlier you identify risk, the easier—and cheaper—it is to manage. That’s why teams like JRM have made policy review a part of the earliest phase of vendor evaluation, well before a bid is awarded. Risk teams are reviewing safety programs, financial health, and insurance coverage as a single package, giving them more leverage and insight when comparing subcontractors.

Once a contract is signed or a vendor is onsite, you lose flexibility. If coverage isn’t sufficient or if the policy excludes the work being performed, it’s often too late to switch vendors without causing project delays or cost overruns.

Note: Ready to explore how Jones can streamline your full policy verification? Talk to our team of experts today!

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What COIs Miss: Hidden Exclusions That Undermine Coverage

It’s a common mistake: a subcontractor submits a COI that lists valid dates, appropriate limits, and the right policy types. Everything looks fine—until an incident occurs and the claim is denied.

That’s because exclusions and limitations don’t appear on a COI. They live in the full policy document, often buried in endorsements. This blog post explains the limitations of COIs in greater depth). Here are some of the most common red flags teams uncover during policy review:

1. EIFS (synthetic stucco)
Hidden Policy Detail: Blanket exclusion even if EIFS isn’t installed

2. Height limits
Hidden Policy Detail: No work above 15 or 30 feet

3. Labor law (action-over)
Hidden Policy Detail: Excludes claims under NY or IL labor laws

4. Location-based restrictions
Hidden Policy Detail: No coverage in CA, CO, or NYC boroughs

5. Subcontractor restrictions
Hidden Policy Detail: No coverage if work is subbed out

6. Trade-specific limitations
Hidden Policy Detail: Only certain class codes or scheduled autos

These exclusions can apply even when they’re not directly related to the subcontractor’s scope. For example, EIFS exclusions may void coverage for all work on a building that has synthetic stucco, even if the vendor isn’t installing it.

How Teams Are Using Policy Reviews During Prequal

The most sophisticated risk programs use policy review as a way to assess vendor-level risk, not just project-specific coverage. That means every subcontractor is evaluated based on their overall insurability—how well their coverage aligns with the type of work they perform, where they perform it, and who their brokers and carriers are.

If a vendor has a strong safety record but limited coverage, they may still be approved—with limitations. Teams can assign vendors “approved with exemptions” status, which allows for conditional use based on project size, geography, or contract value.

This approach also improves internal alignment. Risk, Safety, and Procurement teams are aligned on the risk profile of each subcontractor from day one, which simplifies downstream approvals and avoids last-minute surprises.

What to Expect: Timeline and Process

Jones offers two plans for the policy verification: partial review and full review.

Partial policy verification offered by Jones:

Policies are verified against specific exclusions, clauses or provisions. Customers can pick up to 5 items (exclusions or endorsements) they want the Jones team to review. Usually those are:

  • Explosion, Collapse and Underground Hazard Exclusion
  • New York Labor Law Exclusion
  • Height/Gravity Exclusions
  • Designated Work/Operations/Location Exclusions
  • New York Five Borough Exclusion

Full policy verification offered by Jones

Jones’ comprehensive Full Policy Verification service includes ~40 items for CGL and Umbrella policies’ review. To name a few:

  • Hammer Clause
  • Wrap-up/CIP Exclusion / Endorsements
  • Contractors Limitations Endorsements
  • Deductible / Self Insured Retention
  • Limits of Coverage
  • Expiration
  • Carrier AM Best Rating

Form Definition of Insured Contract Contractual Liability Contractual Liability - Railroad Primary Non-Contributory / Other Insurance Per Project Endorsements Additional Insured Ongoing Operations Additional Insured Completed Operations Waiver of Subrogation Labor Law / Third Party Action Over Exclusion / Injury to Employee Designated Work Exclusion / EndorsementsOccurrence Designated Location Designated Operation New York Five Borough Exclusion Prior Injury Exclusion Prior Work Exclusion

  • Partial reviews typically take 24–48 hours
  • Full reviews range from 2–4 business days depending on document availability and vendor responsiveness

The process:

  1. Collect COI and policy (or endorsements) from the vendor
  2. Upload to your policy verification tool (e.g., Jones)
  3. Receive detailed flagging of exclusions, limitations, and coverage gaps
  4. Make an approval, waiver, or rejection decision with confidence

How to Request a Policy for Review

Here’s what to ask your vendors for during prequal:

  • Complete CGL policy (or dec page + endorsements)
  • Additional insured endorsement (CG 20 10 and CG 20 37)
  • Waiver of subrogation endorsement
  • Umbrella/excess policy forms (if applicable)

If a vendor hesitates, explain that policy review is part of your standard risk management process—not an exception. Many vendors will agree once they understand it’s a portfolio-wide requirement, not a personal ask.

What If Vendors Push Back?

Some vendors may hesitate to share full policies. Here’s how teams respond:

  • Reassure vendors that policies are reviewed internally only for exclusions—not pricing or proprietary terms
  • Accept redacted documents if exclusions and endorsements are visible
  • Provide a checklist so vendors understand exactly what’s being reviewed

Clear communication, upfront expectations, and standardization across all subcontractors help reduce friction.

ROI: Why Policy Review Is Worth It

One missed exclusion can lead to a denied claim, legal disputes, and out-of-pocket payments. Risk teams now treat those losses as project costs—not overhead—and are baking insurance review into their financial forecasting.

Policy review helps prevent that by turning a reactive process into a proactive one. When done at the prequal stage, it becomes an early warning system—catching coverage issues before they become margin-killers.

Conclusion: Prequal Is Your Leverage Point

Subcontractor policy reviews are no longer a luxury—they’re a necessity. By moving this step to the prequal stage, construction teams are avoiding costly surprises, reducing claims exposure, and gaining leverage before contracts are even signed.

If you want to reduce insurance-related risk without slowing down your process, policy verification during prequal is the most strategic move you can make.

Quick FAQ: Policy Review in Prequal

What’s the difference between a COI and a policy?

A COI is a one-page summary. The policy is the full legal contract and contains exclusions, endorsements, and conditions not visible on the COI.

What is a policy review?

An audit of a third party’s insurance policy to identify exclusions, coverage gaps, or limitations before work begins.

When should policy reviews happen?

Before bidding, during submittals, and before jobsite access is approved—ideally at the prequal stage.

What documents should I request?

Ask for the CGL policy (or dec page), key endorsements, and umbrella forms. Focus on exclusions.

How long does it take?

Partial reviews: 24–48 hours. Full reviews: 2–4 business days.

Tired of Reviewing COIs and Endorsements Manually?

Jones automates the collection and review of COIs for property management companies, owner-operators, and general contractors across the US. Reach out to us via the form below to find out more about how Jones can help your organization manage your insurance documents.