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TrustLayer targets contractual risk with certified insurance transfer

The company says its approach collects vendor certificates, enforces key endorsements, and verifies coverage to reduce gaps in third-party risk transfer at renewal.

Reported · Written up by our desk · Industry & Deals

TrustLayer is rolling out an insurance workflow it says brings a more verifiable form of contractual risk transfer to commercial underwriting. The concept is that businesses should shift losses created by subcontractors to the subcontractors, by requiring coverage that protects the hiring party.

Coverager describes how the system collects certificates of insurance from vendors before they enter a job site, enforces Additional Insured endorsements, and tracks expired coverage. It also focuses on ensuring that when a subcontractor makes a mistake, the subcontractor’s insurance responds rather than the contractor’s.

The piece argues that traditional underwriting often sees only broad account inputs like industry codes, payroll, revenue, and loss runs, and may rely on supplemental applications or conversations. It says insurers rarely have a reliable view into whether a customer actually controls the third-party risk they pass along.

Coverager also outlines common contract and insurance mechanisms, including contractual risk transfer, certificates of insurance as a snapshot rather than a guarantee, and three endorsements it calls critical for the transfer to work: Additional Insured, Waiver of Subrogation, and Primary & Non-Contributory. It adds that missing or incorrectly written endorsements can leave coverage gaps, contributing to unexpected losses in commercial lines.

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