Workers' Comp Certificates: What to Check Before Work Starts

Before a vendor starts work, check that their workers comp certificate of insurance actually shows a workers’ comp line, in the name of the company you hired, with dates that cover the job. Then confirm the statutory box is ticked, all three employers’ liability limits meet your contract, owners aren’t excluded without you knowing, the policy covers the state where the work happens, and any required waiver of subrogation is backed by the endorsement itself.

A vendor’s general liability limits get most of the attention, but the workers’ comp line answers a simple question: if one of their people is hurt on your job, whose insurance pays? A certificate can look fine at a glance and still leave you exposed.

This article is general information, not legal or insurance advice. Check your contracts and talk to your insurance broker or attorney about your situation.

What does workers’ comp cover, and why should you care?

Workers’ compensation pays for a worker’s medical care and lost wages after a job-related injury or illness. It covers the vendor’s own employees, not yours and not the public. Employers’ liability, which almost always sits on the same policy, covers the employer if it is sued over a workplace injury in situations workers’ comp does not handle.

You care because the injured worker is on your site, doing your work. If their employer has no coverage, the cost has to land somewhere, and you are close by. For how workers’ comp fits next to the other coverage you ask for, see the guide to certificate of insurance tracking.

Where workers’ comp shows on an ACORD 25

On the standard ACORD 25, workers’ compensation and employers’ liability share one row near the bottom of the coverages table. It shows:

Field	What to look for
Insurer letter	Points to an insurer in the “insurers affording coverage” section, with its NAIC number
Policy number	Should be present; a blank here is a question to ask
Policy effective and expiration dates	Current today and through the work you have scheduled
SUBR WVD	Marked if a waiver of subrogation applies (see below)
Statutory limits	A checkbox, usually ticked
E.L. each accident	Employers’ liability limit per accident
E.L. disease, each employee	Limit per employee for occupational disease
E.L. disease, policy limit	Total limit for all disease claims in the policy period
Proprietor, partner, officer, or member excluded	A Y/N question about owners left off the coverage

For a walk through the whole form, see how to read an ACORD 25.

“Statutory” means the state sets the benefits

Workers’ comp does not have a dollar limit the vendor chooses. The benefits are set by state law, which is why the certificate shows a checkbox for statutory limits instead of an amount. If your contract says “workers’ compensation: statutory”, a ticked box is what you are looking for.

The three employers’ liability limits

Employers’ liability does have dollar amounts, and contracts often set minimums for all three. Check each one against your contract separately. It is easy to confirm the “each accident” figure and miss that the disease limits are lower than required. The right amounts depend on your contract and your broker’s advice.

What should you check before work starts?

Run through this list when the certificate arrives, and before the vendor starts work:

1. The line is there at all. A certificate with general liability and auto but no workers’ comp row is common. It may mean the vendor has no employees, has coverage that was left off, or has no coverage. Ask which.
2. The insured name matches. The workers’ comp policy should be in the name of the company you hired. A crew working under one entity while the policy covers another is a gap.
3. The dates cover the work. Check the expiration date on this row, not just the general liability row. Workers’ comp often renews on a different date.
4. Employers’ liability meets your contract, all three limits.
5. The owner exclusion question. If the form shows owners or officers are excluded, the people excluded may not be covered if they are hurt. That can matter a lot for a small vendor where the owner is on the tools.
6. The states where the work happens. See the next section.
7. Any waiver of subrogation your contract requires. Also below.

Why do state rules matter for workers’ comp?

Workers’ comp is regulated state by state, and the rules differ on who must carry it, which businesses can opt out, and how proof is issued. A few points to keep in mind, stated generally because the details depend on the state:

• Some states run workers’ comp through a state fund rather than private insurers. Proof of coverage from those states may not look like a standard ACORD 25 line, and employers’ liability may need to be arranged separately.
• Small businesses, sole proprietors, and owners are treated differently from state to state. Some can exclude themselves or apply for an exemption; others cannot.
• Exemptions usually come with paperwork. If a vendor says they are not required to carry workers’ comp, ask for the state’s exemption document, not just their word.

Check that the policy covers the state of the work

A workers’ comp policy lists the states it covers. That list is on the policy itself, not always on the certificate. If the certificate’s description section names covered states, check that the state where your job sits is included. If it doesn’t, and the vendor is based in another state, ask the vendor’s agent to confirm in writing that the policy applies to work in your state.

For the rules that apply to you, go to your state’s workers’ compensation agency (usually part of the state labor department or a dedicated board), and ask your broker. Don’t rely on a general article, including this one, for state specifics.

Do you need a waiver of subrogation on workers’ comp?

You need one if your contract requires it, and many do. When a workers’ comp insurer pays a claim, it may try to recover the money from whoever it believes caused the injury. If the vendor’s employee was hurt on your site, that could be you. A waiver of subrogation endorsement gives up that right against you.

Many contracts require this waiver on the workers’ comp policy, along with general liability and auto. A mark in the SUBR WVD column on the certificate suggests a waiver exists, but it is not the waiver. Whether it applies to you depends on the endorsement wording, which may be blanket (anyone the vendor agreed in a written contract to waive for) or name you specifically. Rules on these waivers also vary by state.

This needs a human check. Ask the vendor’s agent for a copy of the endorsement, read it, and ask your broker if anything is unclear. CertiTrack reads dates, policy numbers, insurers, and coverage amounts from the certificate, but it does not verify endorsements or policy wording.

Why can the hiring company end up responsible?

Workers’ comp deserves its own check because of who can end up paying. In many states, if a subcontractor fails to carry required workers’ comp and one of its workers is injured, the law can treat the contractor above it as responsible for those benefits. The exact rules vary by state and by the relationship between the companies.

There is a cost even when nobody is hurt. When your own workers’ comp insurer audits your policy, it may ask for proof that your subcontractors carried their own coverage during the policy period. If you can’t show a valid certificate, the auditor may count the sub’s payroll as yours and charge premium on it. Keep every certificate, including expired ones, for the period the work was done.

Ask your broker how both of these work in your state and for your policy. They can tell you exactly what proof your insurer expects. For the wider set of documents to collect from subs, see subcontractor insurance requirements.

Keep it current during the job

A workers’ comp policy that expires mid-project is as much of a gap as no policy at all. Track its expiration date on its own, not just the vendor’s earliest date. CertiTrack reads the expiration date from each uploaded document and emails the vendor at 90, 60, 30, and 7 days before it expires, with a secure link to upload the renewal and a copy to your team.

When the renewal arrives, check it the same way: the line is present, the dates are current, the limits still meet the contract, and any waiver was reissued. Insurers change at renewal, and endorsements don’t always carry over.

If you want to try this on the subs you use most, CertiTrack’s Free plan covers up to 5 vendors; see pricing.

Frequently asked questions

What does “E.L. disease, policy limit” mean?

It is the most the employers’ liability coverage will pay for all occupational disease claims during the policy period, across all employees. The “each employee” disease limit is the cap per person within that total.

Does a vendor with no employees need workers’ comp?

It depends on the state and how the business is set up. Some states let owners without employees skip coverage or exclude themselves; your contract may still require it. If a vendor claims an exemption, ask for the state’s exemption document and check with your state agency.

Is a workers’ comp certificate from another state valid for my job?

Only if the policy covers the state where the work happens. Ask the vendor’s agent to confirm the covered states in writing, and check the description section of the certificate.

Can I accept a letter from the vendor instead of a certificate?

A letter from the vendor is not proof of coverage. Ask for a certificate issued by their agent, or, if they are exempt, the state’s exemption paperwork.

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