Prior to starting or continuing work on a project all subcontractors and suppliers should have active, valid
insurance for that project. The following are types of insurance that should be required on a project from
each contractor prior to proceeding with work:
- Automobile Insurance
- General Liability Insurance
- Workman’s Compensation Insurance
The following are insurance types that may be required for certain types of work:
- Professional Liability / Errors and Omissions Insurance - (Surveying Contractor, Testing Labs
and Inspectors if under contract to the prime contractor) - Added insurance umbrella – Added risk contracts, special construction, mold, asbestos, etc…)
Insurance will protect the subcontractor as well as your company should any damage or injury occur on a
projects. Claims can run into the millions of dollars. If a subcontractor does not have insurance, the
responsibility for payment can fall to the prime contractor. It is very important to confirm that insurance is
in full force and effect throughout the project for each subcontractor.
Create a log for all insurance for each contractor. Enter all of the expiration dates in the log so they can
be monitored throughout the project.
Initial insurance with the contract – Prior to contracts being fully executed by the prime contractor office,
the insurance from the contractor should be received and be on file with the contract. Even though the
contract may have been received from the subcontractor, it should not be released and fully executed
until the insurance has been received.
Monitor Insurance Status – Once the contract has been fully executed, it is the responsibility of the
project staff to monitor the status of the insurance. Insurance may expire at different times during the
project for each contractor. Prior to bringing a contractor onsite during project, the status of the insurance
must be reviewed for validity. All insurance should be reviewed once each month. Note any insurance
that will expire over the next month and notify the subcontractor in writing.
Additional Insured – All insurance must, at a minimum should list H the prime contractor as an
additional insured party on the insurance certificate. Other entities may also be required to be listed as
required by the contract documents.
Project Specific – All insurance issued should be specific to the project. The certificate should list the
Name of the Project
If any of the above items are not properly completed, the contractor should be notified in writing. It should
also be considered to keep the subcontractor from working on the project until the items have been
corrected. The liability far outweighs the schedule of the project. Before stopping work on the project due
to insurance, be sure to consult your main office.
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