Per Policy vs. Per Project on Your Certificate of Insurance: What Every Montana Contractor Needs to Know
Montana contractors framers, roofers, and general contractors in Missoula, learn the critical difference between “Per Policy” and “Per Project” on your Certificate of Insurance before your next job bid.
If you’ve ever been handed a Certificate of Insurance (COI) and stared at that little box that says “Per Policy” or “Per Project” wondering what on earth the difference is — you’re not alone. Most contractors in Missoula have been there, standing in a muddy job trailer, flipping through paperwork while their crew waits on the roof.
Here’s the thing: that little checkbox isn’t just insurance jargon. It could be the difference between being fully covered on a big commercial framing project in downtown Missoula or watching your aggregate limit disappear before the job is even done.
Let’s break it down in plain language.
First, What’s a General Aggregate Limit?
Before we get into Per Policy vs. Per Project, you need to understand what a General Aggregate Limit is on your Commercial General Liability (CGL) policy.
Think of your aggregate limit like a bucket of water. Most Montana contractors carry a $1,000,000/$2,000,000 policy — that means $1M per occurrence and $2M in the bucket for the whole year. Every claim that gets paid out drains that bucket.
The big question is: is that one bucket shared across every job you work on all year or does every job get its own fresh bucket?
That’s exactly what Per Policy vs. Per Project determines.
Per Policy: One Bucket, All Projects
When your COI shows “Per Policy” checked, your $2,000,000 general aggregate limit is shared across every single project you work on during your policy period. c-r-solutions
Here’s a real-world scenario for the Missoula contractor:
You’re a framing sub working three jobs simultaneously, a custom home in the Rattlesnake, an apartment build near the University, and a commercial project on Brooks Street. A bad claim comes in from the apartment job and burns through $1.5M of your aggregate. Now you’ve only got $500K left to cover any claims on the other two jobs for the rest of the year.
That’s the risk. Your coverage gets eroded by claims across all projects.
Per Policy is not necessarily “bad” coverage, it works fine if you’re running one or two low-risk jobs at a time, or if you’re a trade that leans more on professional liability. But for busy framers, roofers, and general contractors juggling multiple sites? It’s a tighter rope to walk. c-r-solutions
Per Project: Every Job Gets Its Own Fresh Bucket
When your COI shows “Per Project” checked, your $2,000,000 general aggregate limit applies separately to each individual project you’re working on. getbcs
Back to that same scenario:
That $1.5M claim on the University apartment job? It only affects THAT job’s limit. Your framing work on the Rattlesnake home and the Brooks Street commercial project still have their full $2M limits available. getbcs
That’s a massive difference. And for general contractors in Missoula who are required to pull Certificates from their subs, this is exactly why most GCs and project owners specifically require Per Project aggregate on your COI. c-r-solutions
It’s not because they’re being difficult. It’s because they need to know that a claim on someone else’s jobsite won’t bleed into the coverage protecting their project.
The Key Thing Most Contractors Miss
Here’s the part that trips people up: Per Project aggregate doesn’t automatically come on your CGL policy. Your policy has to be specifically endorsed to add it. c-r-solutions
If you bought a standard GL policy and never asked about this, there’s a real chance you’re sitting at Per Policy right now — and if a GC or property owner in Missoula asks for Per Project on your COI, you could lose the bid or get kicked off the job.
The fix? Call your agent (hey, that’s us) and ask specifically:
- “Is my general aggregate Per Policy or Per Project?”
- “Do I need to add a Per Project Aggregate Endorsement?”
It’s usually a straightforward endorsement to add, and for active contractors working multiple jobs, it’s absolutely worth it.
Why Montana GCs and Project Owners Care So Much
If you’re a general contractor here in Missoula subbing out roofing, framing, concrete, or electrical, you’re accepting risk every time a sub walks on your jobsite. When you require a COI from your subs, you want to know that a claim on their OTHER job isn’t going to wipe out the limits protecting YOUR project. grbminc
This is particularly important on:
- Commercial builds in Missoula and Western Montana where contract values are high
- Multi-family residential projects where multiple subs are on-site simultaneously
- City of Missoula permitted work, where you’re already required to carry a minimum of $300,000 in general liability ci.missoula.mt
- Any project where the owner or developer has specific insurance requirements written into the contract
If you’re a roofing sub, framing crew, or specialty trade working under a GC — don’t be the guy who loses the bid because your COI says “Per Policy” when the GC requires “Per Project.”
What to Look for on Your COI
Pull up your Certificate of Insurance right now (ACORD 25 form the standard one-page doc). Scroll down to the Commercial General Liability section. You’ll see a section that says:
“GEN’L AGGREGATE LIMIT APPLIES PER: ☐ POLICY ☐ PROJECT ☐ LOC”
One of those boxes is checked. That’s what tells the GC, the project owner, and your insurance agent which type of aggregate you’re running. getbcs
If Per Project isn’t checked and your work requires it, it’s time to get that endorsement added.
Bottom Line for Missoula and Montana Contractors
Here’s the short version you can tattoo on your hard hat:
- Per Policy = one aggregate limit shared across ALL your jobs for the year — cheaper, but riskier if you’re busy
- Per Project = each job gets its own aggregate limit — more protection, often required by GCs and project owners
- Per Project requires a specific endorsement on your policy — it doesn’t come standard c-r-solutions
- Most commercial GCs and project owners in Montana will require Per Project on your COI before you can start work grbminc
Whether you’re swinging a hammer on a Missoula custom home build or roofing a commercial property in Kalispell, your Certificate of Insurance is more than paperwork it’s proof that you’re a professional who shows up protected.
Have questions about your current COI or whether you need a Per Project endorsement? At Amann Insurance Solutions, we work with contractors across Missoula and Montana every day. Give us a call or shoot us a message we’ll pull up your policy and give you a straight answer.