I have written often on the subject of subcontractor certs. Certs, also known as certificates of insurance, show that a contractor company has workers' compensation among other types of insurance.  

James Moore

What happens if the info on one of the subcontractor certs shows a policy that lasts through the end of 2025, but the employer fails to pay the premiums and is canceled not long after your company receives a certificate?

A great article here shows you how to read the subcontractor cert. It's worth a look.  

Things in business change quickly, especially after the pandemic and in inflationary times as businesses are experiencing and may experience for quite some time. 

How do we know if a certificate of insurance is still valid beyond the listed policy dates?  This happens more than one might think. The cert officially is known as the ACORD Form 25(c).  

OK, so how do you keep up with the subcontractor certs to see if they still have valid workers' comp insurance and how often should you check?   

• When your company receives the certificate from the subcontractor.
• Every two to three months; your company’s choice on this one.
• On the date the certificate expires to see about a renewal.

See this insurance certificate article on how a phone call or email can save you thousands in premiums. 

Remember that during the premium audit, if you do not have a certificate, the premiums are on your company. See this article for what happens in a workers' comp court if the subcontractor cert is not valid.

Bottom line

It is the main contractor’s responsibility to maintain valid certificates of insurance. Do the CYA move and verify each one often.   

This blog post is provided by James Moore, AIC, MBA, ChFC, ARM, and is republished with permission from J&L Risk Management Consultants. Visit the full website at www.cutcompcosts.com.