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Certificates of Insurance - Financial Performance Ratings (FPR) PDF Print E-mail
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Financial Performance Ratings (FPR)

The FPR is assigned to small or new companies, which do not meet the criteria required for the best’s rating. Both ratings provide an overall opinion of an insurance company’s ability to meet its obligations to policyholders.

Secure Best's Ratings
A++ and A+Superior
A and A- Excellent
B++ and B+Very Good
Secure FPR Ratings
FPR 9Very Strong
FPR 8 & 7Strong
FPR 6 & 5Good

Vulnerable Best's Ratings
B and B-Fair
C++ and C+Marginal
C and C-Weak
EUnder Regulatory Supervision
FIn Liquidation
SRating Suspended
Vulnerable FPR Ratings
FPR 4Fair
FPR 3Marginal
FPR 2Weak
FPR 1Poor

Not Rated (NR) Categories
Companies not assigned either a best’s rating or FPR opinion are assigned to one of five NR categories. The NR category identifies the primary reason a rating opinion was not assigned to the company.

NR-1Insufficient Data
NR-2Insufficient Size/or Operating Experience
NR-3Rating Procedure Inapplicable
NR-4Company Request
NR-5Not Formally Followed


This is to certify that the policies of contractors insurance listed below have been issued to the insured named above for the policy period indicated, notwithstanding any requirement, term or condition of any contract or other document with respect to which this certificate may be issued or may pertain, the insurance afforded by the policies described herein is subject to all the terms, exclusions and conditions of such policies. Limits shown may have been reduced by paid claims.


First off let’s get one thing clear…ALL contractors insurance policies have exclusions. You hear terms like all risk, special form, comprehensive, full coverage. Those phrases do not mean there are no exclusions.

In a contractors general liability policy all the exclusions are listed on the (Dec) front page of the policy or on the second page of the policy. The problem is that they are usually listed by form number, not by name.

In order to make sure you understand the exclusions, look at the form numbers on the front page and go find that form (by number) in the policy. (Usually the form number is in the bottom left hand corner)

If you see a form number on the front of the policy but cannot find that form in the policy, your policy is not complete! Someone forgot to add that form to the policy was put together. People make mistakes! If you find a form number on the front of the policy and cannot find that form in the policy call your contractors insurance agent and ask them for missing page(s). it may be a very important exclusion.

The exclusions are critical! When you get a proposal for insurance the first thing you should look out at are the exclusions.

For instance, if you are a concrete contractor and you do house pads, if you have exclusion for foundation work in your policy you have a problem. The worse thing is you will not find out about your problem until you have a claim and it is denied, by then it’s too late.

Here is a list of exclusions I have found in many policies; this is by no means “all inclusive”.

Look over this list and see what exclusion would apply to your operation


Claims arising from any classification or class code not listed on the declaration page of this policy. For example: You are a roofing contractor and you get a quote that is 50% less than all other quotes. The policy comes in and your company is classified as a landscape contractor. Any claims will be denied because you were not classed correctly.


Claims arising out of: The act or omissions of independent contractors while working on behalf of any insured, or the negligent hiring or contracting, investigation, supervision, training, retention of any independent contractor for whom any insured is or ever was legally responsible and whose acts or omissions would be excluded, if you use subs, this exclusion can be a killer.


No Coverage for exposures to asbestos, asbestos fiber, or any material containing asbestos or asbestos products, including without limitation, the costs of asbestos removal or damage in the course of effecting such removal. (Very Common Exclusion)


Claims arising out of the rendering of or failure to render any professional services by you or any engineer, architect or surveyor who is either employed by you or performing work on your behalf in such capacity. Professional services included: The preparing, approving, approving, or failing to prepare or approve. Maps, shop drawings, opinions, reports, surveys, field orders, change orders or drawings; and Supervisory, inspection, architectural or engineering activities. For example, if you make a structural change without the architect’s approval, there is no coverage. (Very Common Exclusion)

Construction Management Errors


This means that if you hire sub contractors, you must get a certificate of insurance from them. If you do not, the amount of your contract with the subcontractor will be added to your payroll or gross receipts and you will be charged. In other words you will pay for the subs general liability. Some companies use a stricter version of this. They require the sub to have the same limits of insurance as you do.


Claims arising directly or indirectly out of formaldehyde whether or not the formaldehyde whether or not formaldehyde is airborne as a fiber or particle, contained in or a part of any building, building material, insulation product or any component part of any building.


Explosion, collapses, and underground. Not a good exclusion for grading, excavation contractors.


Some roofing exclusions are plain and simple. NO ROOFING. Some are not as strict. You must read the exclusion carefully. Some roofing exclusions say there is no coverage while the roof is under construction or repair. For example: You tore off a roof, since the weather forecast called for sunny skies you decide there is no need to cover the roof overnight. It rains… there is no coverage. Read all exclusions carefully.


Plain simple, No demolition Computer failure to recognize the year 2000.


Contractors Insurance does not apply to any liability arising out of landslide, Mud flow, Earth Sinking, Earth Rising or Earth Shifting.


Claims arising out of the actual or alleged presence or actual, alleged or threatened dispersal of lead, lead particles or products containing lead.


Any work in connection with the preconstruction, construction, post-construction, reconstruction, exterior remodeling or repairs of any multi-unit residential building.


Claims that are in progress prior to the commencement of this policy.


Not a good idea if you are a landscape contractor.


This is a very severe exclusion. This says that any work you did prior to the policy date is not covered. For contractors this can be a death sentence on all prior work 99% of all contractor claims occur years after building was built.


Exterior insulation and finish system means the design, manufactured, construction, fabrication, preparation, installation, application, maintenance or repair, including remodeling, service, correction, or replacement, of an exterior insulation and finish system or any part, thereof or any substantially similar system or any part, including the application or use of conditioners, primers, accessories, flashing, coatings, caulking or sealants in connection with such a system when performed by you.


The elevation of swimming pool due to high water table.


Claims arising our of foundation work, including but not limited to the design, specification, inspection, construction, installation, repair, replacement, improvement or reinforcement of any foundation or any part of a foundation. Foundation means the entire substructure below the first floor or frame of a building, including but not limited to any footings, footing beams, piers, grade beams, pilings, pilings or support upon which the building rests.


But you need to read and ask questions about any exclusion you do not understand!

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