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Certificate of Insurance for Contractors: How to Collect and Track Sub COIs

Every sub on your job should carry insurance, and every one of those policies has an expiration date. COI tracking is simply making sure you always have a current certificate on file before you pay. Here is how to do it without living in your inbox.

Why it matters

If a subcontractor's workers' comp lapses and one of their people gets hurt on your job, the claim can come to your policy. At year end, your insurer's premium audit can also charge you for that sub's payroll as if they were your own employees. A lapsed general liability policy means damage they cause can land on you as well. A current certificate on file is your first line of defense.

What to collect from every sub with their subcontractor certificate of insurance

• Certificate of liability insurance (ACORD 25). The standard one-page form that lists each policy, the insurer, policy numbers, limits and expiration dates.
• General liability. Check the per-occurrence and aggregate limits against your contract.
• Workers' compensation. Or the state's exemption form if the sub truly has no employees.
• Commercial auto, if they drive to or on your sites.
• Umbrella or excess, if your contract requires higher limits.
• W-9, so you can issue 1099s at year end.
• Trade license, where your state or city requires one.

What to check on the certificate

1. Policy expiration dates. These drive everything else. Write them down for every policy, not just general liability.
2. Limits. Compare them with your subcontract. Many builders require at least $1,000,000 per occurrence for general liability.
3. The insured name. It should match the company you are paying.
4. Certificate holder. It should be your company.
5. Additional insured. If your contract requires it, ask for the actual endorsement page. A certificate only summarizes coverage; it does not change the policy.

The tracking routine that works

Most small builders start with a spreadsheet: one row per sub, one column per policy expiration date. That works if someone checks it every week. In practice the routine needs four things:

• A reminder to the sub 30 days before a policy expires, and again at 14 and 7 days.
• A simple way for the sub to send the renewed certificate, ideally from their phone.
• A pay-hold rule: no current certificate, no payment. Make it part of your subcontract so nobody takes it personally.
• A record of every certificate you have received, for your insurer's audit or a lender's draw review.

Spreadsheet or software?

A spreadsheet is free, but it cannot email a sub, it does not know today's date, and it lives on one person's computer. Once you have more than a dozen active subs, the time spent chasing paperwork usually costs more than a tracking tool. Whatever you use, the rule is the same: check before every payment.