A subcontractor provides a certificate of insurance. What should the prime contractor understand?
- AIt guarantees every claim will be paid
- Verify the policy, limits, and exclusions
- CIt replaces the subcontract
- DThe certificate rewrites every policy exclusion
Why B is correct
Risk transfer depends on the actual policy and required endorsements, not the certificate alone. Contractual requirements should be reviewed before work and monitored for cancellation or expiration.