West Virginia Contractors License Practice Exam

How might contractors verify the insurance status of subcontractors?

1. Request a letter of recommendation

2. Check state licensing boards

3. Request a certificate of insurance

4. Review their past projects

The correct answer is: Request a certificate of insurance

To verify the insurance status of subcontractors, requesting a certificate of insurance is the most direct and effective method. A certificate of insurance provides proof that the subcontractor has the necessary insurance coverage, such as general liability and workers' compensation. This document typically includes details like the policy numbers, coverage limits, and the duration of coverage, thereby helping contractors ensure compliance with legal and contractual requirements while also protecting themselves from potential liabilities arising from the subcontractor’s work. Other methods, while useful for gathering different types of information, do not specifically address the verification of insurance status. For instance, letters of recommendation can indicate a subcontractor's reliability but do not provide any insurance information. Checking state licensing boards can confirm that a subcontractor is licensed to operate but doesn't reveal their insurance status. Finally, reviewing past projects might give insights into the subcontractor's experience and quality of work, but it will not show whether they are currently insured. Hence, the certificate of insurance is the key document needed for confirming insurance status.