How-to guide
What happens if a subcontractor’s insurance expires mid-job
Their coverage stops on the end date. The certificate in your file doesn’t change, so it looks fine. If someone gets hurt or something gets damaged after that date, the sub has no insurance behind them, and the claim can land on your own policy. Check the dates before the job, and again before they end.
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Put in the policy’s end date and your job’s end date. The tool above tells you if the policy covers the work or runs out in the middle.
What actually happens
- Day of expiry: the sub’s policy stops covering new incidents. Nothing arrives in your mailbox.
- After that: if someone is hurt or property is damaged, you can’t make a claim on the sub’s policy for that date, because there wasn’t one.
- Where the claim goes: often to you, and to your own general liability policy, up to your deductible or retention.
- After the claim: your insurer may go after the sub for the money under your contract. That’s a collection fight, not insurance.
The hidden cost: your premium audit
Many insurers audit your payroll and your subs at the end of the year. If a sub had no proof of coverage on file, the insurer can count that sub’s work as if it were your own payroll, and charge you for it. Ask your carrier how yours treats uninsured subs. See how premium audits count subs.
What to do if you find a lapse
- Look at the exact end date. Is it past?
- Ask the sub and their agent for proof of renewal in writing, today.
- Check your contract. It says what happens when a sub is out of compliance.
- Call your broker if work has continued without coverage.
Not legal or insurance advice. This is general information. Your contract, your state and your policy decide what applies to you. Ask your broker or attorney.
How to stop it happening
Write down every policy’s end date, not one date per sub. Policies renew on different days. Set a reminder 30 days out. Chase the sub and their agent. That’s the whole job. It’s also the work we do for you: see how it works.
Why policies lapse
| Reason | How to handle it |
|---|---|
| The sub forgot to renew | Ask the agent for a new certificate right away |
| The policy renewed, but the agent never sent the certificate | Ask the agent to issue it today |
| The sub did not pay the premium and the policy was canceled | Treat it as no coverage. Stop work until proof of a new policy arrives |
| The sub switched insurers | Get new certificate and endorsements from the new insurer |
| The sub closed the business | Document it and review your contract’s default terms |
An email you can send
Hi [name], our records show your [policy type] ends on [date]. Please send your renewed certificate and endorsements by [date]. If we do not receive them, we will have to pause work and any payment until we do. Thank you.
Copy the sub’s agent so they see the request too.
Contract wording to add
- Subs must keep required insurance active for the whole job.
- Renewal certificates are due before each end date.
- Work and payment may be paused if coverage lapses.
Ask your attorney to word it. See the clause structure.
What to do in the first 24 hours
- Confirm it is really expired. Call the sub’s agent. Sometimes the policy renewed and the new certificate was never sent.
- Ask for the renewal certificate today. Agents can issue one in minutes.
- Decide on site access. If there is no proof of coverage, many contractors pause the sub’s work until it arrives.
- Hold the next payment if your contract allows it. Check with your attorney first.
- Write it down. Date, who you called, what you were told.
A reminder schedule that works
| When | Action |
|---|---|
| 60 days before end date | Heads-up email to the sub and their agent |
| 30 days before | Ask for the renewal certificate and endorsements |
| 10 days before | Phone call. Tell them work stops if no certificate by the end date |
| Day of expiry | No certificate? Pause work and payment as your contract allows |
Each policy has its own date, so one sub can have four reminders a year. Do not track one date per sub.
Frequently asked questions
Does a sub’s insurance expire on the policy end date or on my job end date?
On the policy end date. If the policy ends before your job does, the work after that date isn’t covered unless the sub renews or replaces the policy.
Can I make the sub stop work if their insurance expired?
Your contract controls that. Many subcontracts let you stop work or hold payment until proof of coverage arrives. Check yours with your attorney.
Will the insurance company tell me if a sub’s policy is canceled?
Don’t count on it. The standard certificate wording only says the insurer will endeavor to notify you, and that isn’t a promise.
Can I terminate a sub whose insurance lapsed?
It depends on your contract. Many contracts treat missing insurance as a default. Ask your attorney before terminating.
What if the sub’s workers’ comp lapsed and someone is hurt?
Call your own broker right away. Rules differ by state, and you may be responsible. See our state guides.
Who is responsible if a sub’s insurance expires mid-job?
It depends on your contract and your state. In practice you carry the risk if you let the sub keep working without proof of coverage. Check your contract and ask your attorney.
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