Workers compensation coverage protects employees injured on the job. When a vendor’s employee is hurt on your property and the vendor lacks workers comp, your organization can become part of the claim. Property managers must verify workers comp — not assume it is included.
When workers comp is required
- Vendor has W-2 employees (including small crews)
- State law requires coverage for the vendor’s trade
- Your contract explicitly requires workers comp
- HOA or commercial lease mandates it for all contractors
Reading the COI workers comp section
On ACORD 25, workers comp appears with policy number, effective dates, and limits (often “Statutory” or state-specific amounts). Blank or “Excluded” for a vendor with employees is a hard stop — do not allow on site.
Sole proprietors and exemptions
Some states allow sole proprietors to opt out with a filed exemption. That requires a valid exemption certificate on file — not just a verbal claim. Requirements vary by state and province; verify with your broker or attorney for high-risk work.
Red flags
- Workers comp dates don’t align with general liability dates
- “Per statute” with no policy number listed
- Vendor uses 1099 subs without requiring sub COIs
- Certificate says “N/A” but crew size on site is >1
Automate workers comp checks
CertGuard extracts workers comp status from COI PDFs and lets you require it via compliance rules — vendors without coverage are flagged automatically. Start free or review our full vendor COI audit checklist.