What happens when a contractor's insurance expires?

Why an expired certificate matters

A certificate of insurance (COI) is evidence of coverage on the day it was issued. It is not a guarantee that the policy stays in force. Once the expiry date on the certificate has passed, it no longer shows anything about current coverage.

If the contractor's policy has truly lapsed and something goes wrong, such as water damage, a fall, or damage to a neighbouring unit, there may be no insurer to respond. The claim can then fall to your organization, your own insurer, or the building's owners. Your own insurer may also expect you to show that you checked your vendors' coverage.

What usually happens when a contractor's insurance expires

• The policy renewed, but you have the old certificate. This is the most common case. The contractor or their broker just needs to send the new COI.
• The policy renewed with different terms. Limits may have changed, or your organization may no longer be listed as additional insured. Check the new certificate rather than assuming it matches the old one.
• The contractor switched insurers. The new certificate will show a different insurer and policy number. Confirm the coverage still meets your requirements.
• The policy lapsed or was cancelled. The contractor has no coverage until a new policy is in place. Work should not continue in the meantime.

What to do when you spot an expired certificate

1. Check whether the contractor is on site now or scheduled soon.
2. Contact the contractor and ask for a current certificate of insurance, with a clear date you need it by.
3. If the contractor works through a broker, ask them to have the broker send the certificate directly.
4. Pause new work orders for that contractor until a current certificate is received.
5. When the new certificate arrives, check the limits, coverage types, additional insured wording and new expiry date against your requirements.
6. Record the date you received and reviewed it.

Many organizations write a rule into their vendor terms: no current certificate, no new work. Having the rule in writing makes the conversation easier, because you are applying a policy rather than making a judgment about a specific vendor.

Preventing gaps before they happen

Most expired certificates are a tracking problem, not an insurance problem. A few habits close most of the gaps:

• Record expiry dates, not just documents. A folder of PDFs does not tell you what is about to lapse.
• Request renewals ahead of time. Asking 30 days before expiry gives the contractor and broker time to respond.
• Ask for notice of cancellation. Many organizations require 30 days' notice of cancellation in their insurance requirements, so a cancellation reaches you before it takes effect.
• Track WSIB clearances alongside insurance. Clearances are valid for up to 90 days, so they need renewing more often than insurance. See how long a WSIB clearance is valid.

Check the new certificate, not just the date

A renewal is a good moment to confirm the coverage still fits the work. If the contractor has taken on larger jobs at your property, your required limit may have changed too. Most commercial work calls for at least $2M in general liability per occurrence, and higher risk trades commonly carry $5M. See how much liability insurance a contractor should carry.

Keeping it current

Set up a simple schedule: a monthly review of upcoming expiries, renewal requests sent 30 days out, and a hold on new work for any vendor without a current certificate. For a fuller approach, read how to manage contractor insurance certificates.

Vendorpass tracks each vendor's certificate expiry dates and asks the vendor for an updated certificate before the current one lapses.