How should the prime contractor determine whether a subcontractor has workers' compensation insurance?

How should the prime contractor determine whether a subcontractor has workers' compensation insurance?

• A. Call the subcontractor directly and ask for proof
• B. Ask to see the expiration date on the subcontractor's certificate of insurance
• C. Rely on the subcontractor's word without verification
• D. Require a copy of payroll records for all employees

Answer: (B)

Verifying that a subcontractor has active workers’ compensation insurance is essential to limit liability and stay compliant on the job. The most reliable approach is to obtain the subcontractor’s certificate of insurance and check the expiration date to confirm the coverage is current for the project period. A current COI shows the policy is in force and valid when work is happening; you can also call the insurer or broker to verify that the policy exists and is active. Relying on a verbal assurance or asking for proof without confirming the date can leave you unaware of lapses or cancellations. Payroll records don’t prove workers’ comp insurance; they relate to wages and employees, not insurance status. In California, confirming a valid workers’ compensation certificate before work begins is standard practice to protect both parties.

Verifying that a subcontractor has active workers’ compensation insurance is essential to limit liability and stay compliant on the job. The most reliable approach is to obtain the subcontractor’s certificate of insurance and check the expiration date to confirm the coverage is current for the project period. A current COI shows the policy is in force and valid when work is happening; you can also call the insurer or broker to verify that the policy exists and is active. Relying on a verbal assurance or asking for proof without confirming the date can leave you unaware of lapses or cancellations. Payroll records don’t prove workers’ comp insurance; they relate to wages and employees, not insurance status. In California, confirming a valid workers’ compensation certificate before work begins is standard practice to protect both parties.