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  • Writer's pictureLaura Dickson

Do You Pay Attention to Your Subcontractors’ Insurance?

Does it Meet Clients’ Requirements?

When you hire a subcontractor, it’s always good to check their insurance coverage and see if it meets your needs. You may think that this isn’t too important, but you do want to double-check that your subcontractors have a good liability coverage policy in place. If you don’t do this, then you could find yourself responsible for all the damages.

To prevent a near miss, insurance claim, or reputational incident it is important to have strong policies that are adhered to. It is also important that Subcontractors are screened to ensure they follow similarly high standards.


When considering a subcontractor, look at their past work examples, are they the same size and scope? Do they have business references? Are they ISO certified or COR certified? Look at safety, quality, insurance, and financials if they are a public company. These things can be a factor in times of emergency and loss.

Verify insurance certificates

In Canada, Subcontractors should provide proof of worker's compensation before coming on-site. Businesses can require an insurance certificate showing proof of Commercial General Liability to the limit requested in the contract. The nature of the work will determine the types of insurance needed.

Confirm the Insurance certificate is correct

Review the certificate:

  • Are the limits correct? If the limits provided in the certificate are not as requested in the contract, your Subcontractor may need to be educated on why they need to purchase more insurance in order to pre-qualify for the project.

  • Is the company name correct?

  • Do they have the type of insurance requested in the contract?

  • Does your company want a Waiver of Subrogation?

Do you track when subcontractors’ policies expire?

Policies are important, so it’s best to know the date when your subcontractor’s insurance policy is set to expire. Insurance policies may expire during a project term, and a new insurance policy will need to be renewed by the Subcontractor. An updated certificate proves this has occurred. Small to medium companies may need help managing Subcontractor pre-qualification and other risk management services. Contact DTD management with help with this matter.

Contact our Risk Management expert Laura Dickson.


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