How to check contractor insurance at prequalification

An insurance certificate is a starting point, not a complete answer to whether a contractor's planned activity is insured. At prequalification, the buyer needs to match the policyholder, type of cover, dates and relevant work to the contractor it will actually appoint. Where a schedule or endorsement is unclear, the right next step is to ask the contractor's broker or insurer for clarification. A file name or automated status cannot settle a coverage dispute.

This guide covers the initial evidence check. Our insurance expiry guide covers renewal monitoring after appointment, and the live-work lapse guide covers what to do when cover becomes uncertain during a job.

Define the work and the contractual requirement first

Write down the actual activity, site, legal contracting entity, expected dates and any insurance requirement in the tender or contract. Avoid asking every supplier for the same generic document pack. An electrician carrying out design, installation and testing may have different relevant risks and contractual cover requirements from a maintenance cleaner. Some specialist work may need additional policy wording or limits.

Separate three questions: what cover the law requires of the contractor, what the buyer's contract asks for, and what is prudent for this particular risk. These are not interchangeable. In Great Britain, most employers must hold employers' liability insurance, subject to exemptions; GOV.UK's current guidance explains the requirement. Public liability and professional indemnity may be client or work requirements, but neither should be described as a universal statutory requirement for every construction contractor.

Match the insured party

Compare the policyholder with the company named in the bid and contract. Check company number or other identifiers where available. A trading name may be legitimate, but the relationship should be explicit. If the policy is in a group company's name, ask for evidence that it covers the bidding entity and activity. Do not assume a parent company's certificate automatically extends to all subsidiaries.

Build UK's Common Assessment Standard (CAS) Version 5 specifically asks that the company name on insurance policies match the name in its identity question. Its financial section also requests policy number, limit, excess and expiry date. A buyer may demand additional information, so read its actual tender requirements.

Compare dates, type and limit

Check the start and end of the policy against the planned work period, not merely the tender date. Distinguish employers' liability, public liability, professional indemnity and any specialist cover. Record the limit and whether the buyer's required level is met. If the project is likely to continue beyond expiry, set a renewal condition and owner before work starts.

The document may be a certificate, schedule or broker letter. A certificate can omit important details such as exclusions, territory or a particular activity. Ask for the schedule or written clarification when the missing detail matters. Do not infer coverage from a summary phrase like “construction services”. Where professional indemnity is relevant, check with a qualified adviser what claim basis and continuity the contract requires; this guide does not interpret policy terms.

Check scope and exceptions with the right person

An insurer may cover a trade generally but exclude a specific high-risk activity or impose conditions. Rather than guessing from a PDF, list the unresolved question plainly: “Does this policy cover the proposed roofing work at this height, by this legal entity, during this period?” Send it to the contractor and request confirmation from its broker or insurer as appropriate. Retain the response with the decision record.

If the work, entity or subcontracting arrangement changes, revisit the affected insurance check. A subcontractor's own policy should not be assumed to fix a gap in the principal contractor's contractual obligations, or vice versa. The contract and policy wording determine the position.

Record a conditional decision honestly

Use three outcomes: verified for the requested evidence, clarification required, or not accepted for this work. Record who checked the source document, on what date, what was unclear and who can release the supplier after the answer arrives. Do not label a contractor “insured” globally based on one certificate checked for one job.

The HSE's using contractors guidance treats insurance as one part of selecting and managing a suitable contractor. Insurance does not prove competence, a safe method or compliant supervision. Keep those decisions separate in the prequalification record.

When comparing contractor prequalification software, ask whether it stores the underlying document, reviewer notes, exception, verified entity and renewal owner. Ask the vendor to show a realistic example. Complys does not underwrite insurance, decide disputed policy coverage or replace a broker's advice.

Sources and claim boundaries

• Build UK — Version 5 CAS question set: financial section's identity, insurance and date fields.
• GOV.UK — Employers' liability insurance: Great Britain legal requirement and exemptions.
• HSE — Using contractors: contractor selection and management beyond document collection.

Editorial note: The product CTA is a link to an existing software page, not a claim that software validates insurance wording. If a client needs a legal or coverage opinion, refer the specific policy to a suitably qualified adviser or insurer.