Insurance Requirements in RFPs

Canadian bid solicitations routinely state the insurance the winning contractor must obtain and maintain for the duration of the contract — most often commercial general liability (CGL), sometimes alongside automobile liability, umbrella/excess, professional liability or builder's risk depending on the work. For federal contracts these requirements come from standardized clause sets, and ignoring them can make a bid non-compliant.

Where the requirements live

On the federal side, insurance clauses have historically come from the Standard Acquisition Clauses and Conditions (SACC) Manual maintained by Public Services and Procurement Canada, which included a dedicated "G – Insurance" section. That manual is no longer maintained as of June 2023 — clauses previously labelled Active are shown as archived, and contracts issued with SACC clauses remain valid — so today you will most often find the operative insurance requirements stated directly in the RFP's annexes and contract articles, department by department.

What federal solicitations typically require

The pattern across CanadaBuys solicitations: the contractor must obtain CGL and maintain it in force throughout the contract "in an amount usual for a contract of this nature" — with many solicitations setting a floor of not less than $2 million per accident or occurrence and in the annual aggregate. Required policy inclusions commonly are: Canada added as an additional insured, but only for liability arising out of the contractor's performance of the contract; personal-injury coverage; cross liability/separation of insureds; and written notice of cancellation (30 calendar days in one NRCan solicitation, which also required an insurer rated no less than "A-" by A.M. Best and automobile liability of not less than $2 million per occurrence). Some solicitations ask for proof of liability insurance with the bid as a rated criterion; others state a certificate of insurance is not required at solicitation.

What bidders should do

Read the insurance annex before you price the bid — premiums are a real cost, and if the buyer requires a letter from an insurance broker or insurer licensed in Canada confirming you can be insured in accordance with the requirements, you need time to get it. Remember the standard qualifier: compliance with the insurance requirements does not release the contractor from, or reduce, its liability under the contract.

Common questions

Is insurance assessed before award?

It depends on the solicitation. Some make proof of insurance a mandatory or rated criterion at bid stage; others only require the certificate from the successful bidder before contract signature.

Can I use my existing policy?

Often yes, if it meets the stated limits and inclusions — but the additional-insured endorsement for Canada and notice-of-cancellation terms usually require an insurer endorsement, so confirm with your broker before bidding.

Related definitions

RFP · Tender notice · Supplier suspension & debarment