Subcontractor Compliance Checklist

Project:

Subcontractor:

Date:

Before Hiring a Sub

Verify business license — Confirm active state/local license for the trade being performed
Verify workers' comp coverage — Confirm class codes match the work being performed (e.g., roofing = 5551)
Verify GL coverage — Minimum $1,000,000 per occurrence / $2,000,000 aggregate
Verify commercial auto — Required if subcontractors drive their own vehicles to job sites
Request additional insured endorsement — Your company must be named as additional insured on the sub's GL policy
Request waiver of subrogation endorsement — Prevents the sub's carrier from coming after you for claims
Verify carrier AM Best rating — A- (Excellent) or better; do not accept sub-standard carriers
Call carrier directly to confirm coverage — Never trust the certificate alone. Use the carrier's publicly listed phone number to verify

Contract Requirements

Written subcontractor agreement required — Never rely on a verbal agreement; always get it in writing
Indemnification clause — Sub holds you harmless for claims arising from their work or negligence
Insurance requirements clause — Specify exact coverage types and minimum limits in the contract
Right to suspend work if coverage lapses — Contract must allow you to stop work immediately if insurance expires
Payment contingent on maintaining coverage — No valid insurance = no payment; put it in writing

Why this matters: If an uninsured or underinsured sub causes a jobsite injury or property damage, YOUR company's policy responds — and your experience mod, premiums, and reputation take the hit. One bad sub can cost you six figures.

Ongoing Monitoring

Calendar renewal dates for every sub — Set reminders for each subcontractor's policy expiration dates
Request updated COIs 30 days before expiration — Don't wait until the last minute; give subs a 30-day notice
Suspend site access immediately if coverage lapses — Zero tolerance; no active policy means no jobsite access
Quarterly audit of all active sub COIs — Review every active subcontractor's certificate at least every 90 days
Document everything in writing — Keep copies of all COIs, endorsements, contracts, and correspondence on file

Notes

Project:

Subcontractor:

Date:

Red Flags — Watch Out For These

▿ Certificate issued by the sub themselves — COIs must come from a licensed agent or directly from the carrier, never from the sub
▿ Phone number on cert doesn't match carrier's public number — Cross-check the number against the carrier's website or AM Best listing
▿ Coverage limits seem unusually low for the trade — Roofing subs should carry at minimum $1M/$2M GL; anything less is a warning sign
▿ Policy effective dates don't cover the project timeline — Confirm coverage spans the full duration of the sub's work on your project
▿ Sub resists providing certificate or endorsements — If they push back, walk away; legitimate contractors expect this request

★

Quick Reference — Minimum Requirements

Coverage Type	Minimum Limit	Key Notes
General Liability	$1M occ / $2M agg	Must include additional insured + waiver of subrogation
Workers' Comp	Statutory Limits	Verify correct class codes for roofing work
Commercial Auto	$1M CSL	Required if sub drives to job sites
Umbrella / Excess	$1M+ recommended	Strongly recommended for high-risk trades like roofing

Remember: A Certificate of Insurance is just a snapshot — it can be cancelled the next day. Always request endorsements (additional insured + waiver of subrogation) directly from the carrier. Endorsements are part of the actual policy and provide real protection.

📋

COI Tracking Log

Sub Name	GL Exp.	WC Exp.	Auto Exp.	AI	WOS	Verified

AI = Additional Insured • WOS = Waiver of Subrogation • Mark each with ✓ when confirmed

Need help reviewing your subcontractor compliance program?

Contact Benefitra for a free risk assessment — benefitra.com

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