Subcontractor Compliance Checklist

What This Means For You

This free tool takes the guesswork out of understanding your subcontractor compliance checklist. Instead of trying to piece together information from multiple sources or waiting for a broker callback, you can get clear numbers in about two minutes.

Enter your information below — no account needed, no email required. The results will give you a solid starting point for making informed decisions about your benefits strategy.

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 coverage expires
Payment contingent on maintaining coverage — No valid coverage = 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 PEO4YOU for a free risk assessment — peo4you.com

Common Questions

Is this subcontractor compliance checklist really free?

Yes, completely free with no strings attached. You do not need to create an account, provide an email address, or speak with anyone. The tool runs entirely in your browser and gives you results immediately.

How accurate are these estimates?

The calculations use industry-standard data and published rate tables, so they provide a reliable directional estimate. Your actual costs will depend on your specific situation, location, and the providers you work with. We recommend using these numbers as a starting point for getting real quotes.

What should I do with these results?

Use them as a baseline for informed conversations with brokers, PEOs, or insurance providers. Having these numbers before you talk to a salesperson puts you in a much stronger negotiating position and helps you evaluate whether the proposals you receive are competitive.

What This Means For You

Download This Checklist

Ready to Download

Getting Started — Your Next Steps

Common Questions