Why Contractors Should Be Cautious About Accepting a Certificate of Insurance from the Old Amish Order Risk Pool
When you take on a job—whether as a GC, subcontractor, or specialty trades professional—you rely on certificates of insurance (COIs) to protect your business. A COI isn’t just a piece of paper; it’s verification that the other party carries legitimate, enforceable coverage that will respond if a claim occurs.
In the construction world, one bad COI can expose you to massive liability. That’s why contractors must be especially cautious when presented with insurance certificates from non-traditional, unregulated, or self-insured religious or community risk groups, such as the Old Amish Order Risk Pool or similar arrangements.
Below are the key reasons you should not automatically accept a COI from entities like these—and why doing so can put your business at serious risk.
These pools are often not licensed insurance companies
Traditional insurance carriers undergo rigorous state-level regulation. They must maintain reserves, satisfy solvency requirements, and be approved to issue policies in each state where they operate.
Most religious or community risk pools:
- Not licensed insurers
- Are not regulated by state Departments of Insurance
- Are not required to maintain legally mandated reserves
- Usually operate more like sharing agreements than true insurance contracts
If a COI is issued by an entity that isn’t a legally recognized insurer, the certificate may not represent enforceable insurance coverage at all.
Their “coverage” may be discretionary—not guaranteed
In many communal or faith-based risk pools, members contribute funds and the group decides whether to pay a claim. That means:
- There may be no binding duty to defend or indemnify
- Claims may be denied based on internal rules or community decisions
- Payments are not legally guaranteed
In construction, where claims can be six or seven figures, “discretionary coverage” is effectively no coverage.
COIs from unregulated pools may not meet contract or legal requirements
Most construction contracts require:
- Licensed insurer carriers
- AM Best rating minimums
- Statutory workers’ compensation
- Commercial general liability with specific limits
- Additional insured status
- Waivers of subrogation
- Primary & noncontributory wording
Non-licensed risk pools often cannot provide any of these in a legally enforceable form.
If you accept the COI, you may be violating your own contract, exposing yourself to financial and legal liability.
Your upstream clients likely won’t accept it—putting you in breach
Owners, developers, municipalities, and commercial clients typically require proof of insurance from authorized, rated carriers.
If you submit a COI from an unrecognized pool like the Old Amish Order Risk Pool:
- The client may reject it
- You may be barred from the jobsite
- Will be considered in breach of your contract
- You might have to replace the subcontractor at your expense
- What seems like a small administrative detail can derail a project.
Claims may not be defended by a professional insurance adjuster
If a worker is injured or property damage occurs, a typical insurer assigns adjusters, attorneys, and claims managers to handle the case.
- Unregulated risk pools often:
- Have no have formal claims departments
- Do not provide professional claims handling
- Do not offer legal defense obligations
That means you could wind up handling the claim—and paying for it—yourself.
Financial stability is uncertain
Risk pools don’t publish financials, carry AM Best ratings, or maintain statutory reserves. If a large claim hits, they may simply decide not to pay.
When you’re depending on another contractor’s insurance to protect your business, “trust-based” coverages are dangerously unpredictable.
The COI may look legitimate but may not be enforceable
Some communal risk pools issue certificates that appear similar to standard COIs. But visually similar documents do not mean:
- Coverage is real
- The insurer is authorized
- The language is binding
Relying on a certificate that looks like insurance but legally isn’t can create the illusion of protection while leaving you fully exposed.
Bottom Line: If it isn’t a regulated insurer, it isn’t reliable coverage
This isn’t about criticizing the values or traditions of any community, including Amish groups. It’s about understanding legal risk in the construction industry.
As a contractor, you need verifiable, enforceable insurance backing every subcontractor on your job.
If a COI comes from the Old Amish Order Risk Pool or any other non-traditional, unregulated risk-sharing arrangement, the safest and most professional response is:
- Do not accept it.
Request coverage from a licensed, state-regulated insurance carrier.