Collecting a certificate of insurance from a subcontractor is straightforward. Knowing whether that certificate actually provides adequate protection is another matter. This guide explains what to look for, what the minimum requirements are, and how to spot documents that might leave you exposed.
Public Liability (PL) insurance covers a subcontractor's liability for injury to third parties or damage to third-party property arising from their work. It is not legally required, but is a near-universal contractual requirement in UK construction.
Minimum coverage levels:
Check your specific contract — many JCT and NEC contracts specify the minimum PL limit, and some clients specify higher limits as part of their procurement requirements.
Employers Liability (EL) insurance is a legal requirement under the Employers' Liability (Compulsory Insurance) Act 1969 for any subcontractor that employs people. The statutory minimum is £5 million, though most policies provide £10 million as standard.
A subcontractor without EL insurance is operating illegally if they have any employees. Note that sole traders with no employees are exempt — but this distinction matters and is worth confirming.
Self-employed subcontractors working as sole traders with no workers do not legally need Employers Liability insurance. However, their self-employed status should be confirmed — if HMRC later determines they were actually employees, liability could fall on the main contractor.
An insurance certificate may appear valid at first glance while still leaving gaps in cover. Check each of the following:
The name on the certificate must match the legal name of the entity you are contracting with — not just a trading name. If a company trades as "Smith Plastering" but the legal entity is "J. Smith Plastering Ltd", the certificate should show the registered company name. A mismatch can mean the policy does not cover the subcontractor as you have engaged them.
Confirm the certificate covers the entire period during which the subcontractor will be working. If the policy expires before your project completes, you need a renewed certificate before the original expires — not after.
Many policies have exclusions or limitations based on the type of work. A general builder's policy may not cover specialist activities such as demolition, work at height, or ground works. Check that the certificate explicitly covers the trade or activity you are engaging the subcontractor for.
Most UK policies cover work in Great Britain and sometimes Ireland. If you work on projects outside these territories, confirm the policy extends to the relevant location.
Insurance certificates should be issued by an insurer authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA). You can check this on the FCA's Financial Services Register. Certificates issued by unregulated insurers may not be enforceable.
Unfortunately, fraudulent or altered insurance certificates do exist. For higher-value subcontracts, consider verifying the certificate directly with the insurer or broker:
For subcontractors providing design services — even minor design elements like specifying fixings or detailing connections — Professional Indemnity (PI) insurance should also be confirmed. PI insurance covers claims arising from professional errors or omissions.
This is increasingly relevant as more subcontractors take on design responsibility under design-and-build procurement routes.
Annual insurance renewals create a recurring compliance gap. A certificate that was valid when collected may have lapsed months later without anyone noticing. The industry standard practice of collecting a certificate once and filing it is not adequate for projects that span a policy renewal date.
A robust approach requires:
WorkerRecord records the expiry date of every certificate uploaded by your subcontractors and alerts you in advance when renewal is due. No spreadsheets. No missed renewals.
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