Insurance & LiensQuestion 1560 of 1605
Requiring a subcontractor to provide a certificate of insurance BEFORE it starts work is a best practice primarily because it:
a.Makes the GC the policyholder
b.Extends the mechanics lien deadline
c.Guarantees the sub will never be canceled
d.Confirms required coverage is in force before the sub creates any exposure on the job
Explanation
Obtaining the certificate before work begins verifies the sub's required coverage is in place before any liability-creating work occurs. It is a front-end risk-management control, though the GC should also require additional insured endorsements for actual coverage.
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Related questions on this topic
- After an owner records a lien release bond of 125%, an unpaid subcontractor who wants to be paid must now pursue:
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- A direct contractor completed a private remodel on March 1. No notice of completion was ever recorded and the owner never occupied. The contractor's last day to record a mechanics lien is approximately:
- Which best describes the difference between the payment bond and the performance bond on the SAME project?
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- 'Additional insured' status is most valuable to an upstream party (like an owner or GC) because it:
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Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)