A vendor's insurance expired mid-job: what to do

An expired certificate usually means the policy renewed and nobody sent you the new certificate. Ask the vendor for the renewal certificate today. If it turns out the policy really lapsed, follow your contract: most let you stop work or hold payment until coverage is back.

Step 1: Find out if the policy actually lapsed

A certificate is a snapshot. It shows the policy dates as they were on the day it was issued. When the policy renews, the old certificate still shows the old end date, even though the vendor is fully insured. That is by far the most common case.

Email the vendor and ask for a current certificate showing the renewed policy. If you need an answer faster, call the agent listed as producer on the old certificate. Agents can confirm whether a policy is in force, and can usually issue the renewal certificate the same day.

Step 2: Check the renewal like a new certificate

Renewals change more than the dates. Look again at:

• The insurer and policy number. A new insurer means new policy wording and new endorsements.
• Limits. A vendor cutting costs may have lowered a limit or dropped the umbrella.
• Endorsements. Additional insured and waiver of subrogation must be on the renewal policy too. Ask for the new endorsement pages.
• No gap. The new start date should match the old end date. A gap of even a few days leaves that period uncovered.

Step 3: If coverage really lapsed

If the agent confirms the policy was cancelled or not renewed, treat it as a contract problem, not just a paperwork one.

• Read your subcontract. Most require continuous insurance and allow you to suspend work or withhold payment while it's missing. Follow what yours says, and ask your attorney if you're unsure.
• Keep the vendor off site until a new certificate checks out, if your contract allows it. Any accident during the gap could fall on your insurance.
• Write it down. Note when you found out, who you spoke to and what you asked for. If a claim comes up later, this record matters.
• Tell your own broker if work happened during the gap. They can tell you whether to expect anything from your insurer.

Why it matters even if nothing goes wrong

Your own insurers audit you, usually once a year. If you paid a subcontractor who can't show insurance for the time they worked, your workers compensation and general liability insurers may treat that sub's payroll or cost as yours and charge extra premium for it. A current certificate covering the whole period of work is what prevents that charge.

How to stop it happening again

• Ask early. Request the renewal certificate about 30 days before each expiry date, not after.
• Follow up on a schedule. A reminder after three days and another after a week catches most stragglers.
• Track every policy, not just the first one. General liability, auto, workers compensation and umbrella often renew on different dates.
• Check before you pay. Make a current certificate a condition of releasing each payment.

If you track this in a spreadsheet, our guide on spreadsheets vs software explains where that works and where it starts to slip.