What insurance certificates should you maintain for subcontractors?

• A. Proof of health insurance for all workers.
• B. A performance bond and payment bond.
• C. Proof of general liability, workers' compensation (or exemption), and auto coverage.
• D. Property casualty insurance only.

Answer: (C)

The main idea is protecting yourself from liability by making sure subcontractors carry the right insurance. The best set of certificates to keep on file shows general liability coverage for third-party claims, workers’ compensation (or a valid exemption if the subcontractor isn’t an employee), and auto liability coverage for vehicles used in the work. This combination covers common risks: property damage or bodily injury from the work, injuries to workers, and incidents involving subcontractor vehicles.

Health insurance for all workers isn’t the typical proof a contractor needs to verify risk management. Bonds (a performance and payment bond) serve different purposes related to contract fulfillment rather than day-to-day insurance protection. Property casualty alone doesn’t address worker injuries or vehicle-related risks. So, the required certificates are those three: general liability, workers’ compensation (or an exemption), and auto coverage.