A “Sample Letter To Subcontractor For Proof Of Liability” is a formal request. It asks a subcontractor to provide evidence of their insurance coverage. This is often needed before they start work on a project. It protects the general contractor from potential liabilities.
Need to write this kind of letter? You’re in the right place. We’ve got you covered with templates and examples.
We provide samples to make your job easier. Use our resources to craft the perfect letter. Get the proof of liability you need quickly.
Sample Letter To Subcontractor For Proof Of Liability
[Your Company Letterhead]
[Date]
[Subcontractor Company Name]
[Subcontractor Company Address]
**Subject: Request for Proof of Liability Insurance**
Dear [Contact Person at Subcontractor Company Name],
This letter is to formally request updated proof of your company’s liability insurance. As per our subcontract agreement dated [Date of Agreement], maintaining adequate liability coverage is a requirement for all work performed on our projects.
Please provide a Certificate of Insurance (COI) that meets the following criteria:
* Policy must be currently active.
* Coverage limits must meet or exceed the amounts specified in our subcontract agreement.
* [Your Company Name] must be listed as a certificate holder and/or additional insured.
Please send the COI to [Your Email Address] or mail a physical copy to [Your Company Address] by [Date – Allow a reasonable timeframe].
Failure to provide proof of adequate liability insurance by the specified date may result in a temporary suspension of work until the required documentation is received.
We appreciate your prompt attention to this matter. If you have any questions, please do not hesitate to contact us.
Sincerely,
[Your Name]
[Your Title]
[Your Company Name]
[Your Phone Number]
How to Write Letter To Subcontractor For Proof Of Liability
Subject Line: Setting the Tone
- Be direct. A straightforward subject line like “Request for Certificate of Liability Insurance” eradicates ambiguity.
- Include the project name or job number for context. For example: “Insurance Certificate Request – Project Nightingale #2024-007”.
- Avoid overly aggressive or accusatory language. Maintain a professional demeanor from the outset.
Salutation: Formalities Matter
- Address a specific individual, if known. “Dear Mr. Henderson,” is preferable to a generic “To Whom It May Concern.”
- If you don’t have a contact name, use “Dear [Subcontractor Company Name] Team,”.
- Proofread the name and title meticulously to avert any unintended slights.
Introduction: Laying the Groundwork
- Begin by referencing the subcontract agreement. For instance: “Pursuant to our subcontract agreement dated [Date], Section [Section Number]…”
- Clearly state the purpose of the letter: You are requesting a current certificate of liability insurance.
- Briefly mention the impending deadline or requirement necessitating the insurance proof.
Body Paragraph 1: Detailing Insurance Requirements
- Specify the required coverage types and minimum limits. For example: “We require general liability coverage of $1,000,000 per occurrence and workers’ compensation coverage as mandated by state law.”
- Include any specific endorsements you require, such as being named as an additional insured.
- Be explicit about the acceptable insurance carriers and rating requirements.
Body Paragraph 2: Articulating Consequences of Non-Compliance
- Clearly state the ramifications of failing to furnish the requested certificate. This might include suspension of work, withholding of payments, or even termination of the subcontract.
- Avoid using threatening language. Instead, frame it as a necessary step to ensure project compliance and mitigate risk.
- Offer assistance, if appropriate. “Please let us know if you encounter any difficulties in procuring the certificate; we are here to assist.”
Call to Action: Setting Expectations
- Provide a clear deadline for submitting the certificate of insurance. “Please provide the certificate no later than [Date].”
- Specify how the subcontractor should submit the certificate (e.g., email, mail). Provide the relevant contact information.
- Reiterate the importance of compliance.
Closing: Ending on a Positive Note
- Use a professional closing, such as “Sincerely,” or “Regards,”.
- Sign the letter with your full name and title.
- Include your contact information, including phone number and email address, for easy follow-up.
Frequently Asked Questions: Subcontractor Proof of Liability
This section addresses common inquiries regarding requests for proof of liability from subcontractors. Understanding these requirements ensures compliance and protects all involved parties.
Why is it necessary to request proof of liability insurance from a subcontractor?
Requesting proof of liability insurance protects your company from potential financial liability resulting from a subcontractor’s negligence or accidents on the job site.
What information should be included in a letter requesting proof of liability?
The letter should clearly state the specific insurance requirements, policy limits, and the required certificate holder information. Include project details and deadlines for submission.
What types of insurance coverage are typically required from subcontractors?
Generally, subcontractors are required to provide proof of general liability insurance, workers’ compensation insurance (if they have employees), and sometimes professional liability (errors and omissions) insurance, depending on the nature of their work.
What should I do if a subcontractor fails to provide proof of liability insurance?
If a subcontractor fails to provide the required documentation, you should withhold payment or terminate the subcontract until they comply. Consult with your legal counsel for guidance.
How often should I request updated proof of liability insurance from subcontractors?
Proof of insurance should be requested annually and whenever a policy is renewed or updated. It’s also good practice to request it for each new project.