Accepting the wrong insurance certificate from a subcontractor can be an expensive mistake for a Home Builders. More importantly, allowing a subcontractor to perform work for you until you obtain a valid Certificate of Insurance (COI) also will lead to problems for you and your company.
According to the S.C. Home Builders Self Insurers Fund, a new COI must be requested from each subcontractor at the start of every new job. Jobs for the same type of work but at different locations (different lots) require a new COI for each location unless you have a written contract specifying all multiple locations in the same contract.
In addition, you should not accept an insurance certificate from the subcontractor. Instead, you should receive the COI from the subcontractor’s insurance agent.
If there is any appearance of alteration of Insurance–a different font type, obvious white out and retyping of information–please contact the insurance agent listed on the COI immediately for verification. Keep a record of the person with whom you speak and the date of the conversation.
If you know that the COI you have received is not valid, it is deemed to be insurance fraud and should be reported to the S.C. Attorney General’s office.
If you have any questions, please contact the SIF directly at 800-678-8178.