The sub had insurance. Can you prove it?
At your workers' comp audit, any subcontractor you cannot produce a current certificate for stops being a subcontractor. Their pay gets added to your payroll and charged at your rate. Most contractors find this out in one lump sum, months after the job closed. Enter your numbers below.
Everything you 1099'd out, labor and material.
Expired, missing, or never collected. Be honest.
On your policy declarations page. Residential carpentry often runs $8–$25.
GL audits do the same thing. Set to 0 to ignore.
This is not a fine and it is not negotiable at the desk. It is premium, on work you already paid for and already collected on.
What you should have on file for every sub
| Document | Why | If it's missing |
|---|---|---|
| W-9 | You cannot issue a correct 1099 without it.Get it before the first check, not in January. | IRS penalties + backup withholding |
| COI — workers' comp | Proves the sub carries their own coverage for the dates they worked.A certificate is a snapshot. If it expires mid-job, get the renewal. | Their pay becomes your payroll at audit |
| COI — general liability | Same audit logic, separate policy. | Added to your GL exposure base |
| Additional insured endorsement | The certificate alone does not make you additional insured. The endorsement does.Ask for the endorsement form, not just the COI. | Their carrier can deny your claim |
| Signed subcontract | Scope, payment terms, indemnity, insurance requirements. | No indemnity, no leverage |
| Current trade license | Where the state or trade requires one. | Varies by state — can void permits |
| Lien waivers | Conditional on progress payments, unconditional on final. | Paid subs can still lien the owner |
| Certified payroll | Public or prevailing-wage work only. | Withheld payment on public jobs |
This is a risk check, not legal advice. What is actually required varies by state, by trade, and by whether the job is public or private — and a few states apply much stricter tests than the federal baseline. Use this to find your gaps, then confirm the list with your insurance agent and your attorney. The one rule that holds everywhere: collect the paperwork before the first check, because after the work is done you have nothing left to withhold.
Do this at scale
Chasing paperwork after the fact never works.
The fix is a system that will not let a sub get paid until the file is complete, and that tells you which certificates expire next month, before the auditor does.
Insurance Audit Prep Kit
Checks every sub payment against the certificate dates, estimates your workers comp audit by class, and comes with ten Word letters for chasing what’s missing.
Subcontractor Compliance System
One tracker for every sub: W-9, both COIs, endorsement, license, signed agreement and lien waivers, with expiry dates that flag themselves before they lapse.
Built in Excel · one-time purchase · single-business commercial license