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A subcontract requires $1,000,000 liability coverage, but the certificate shows $500,000. What should be corrected?

Correct Answer

C) Coverage limit.

The certificate should show coverage meeting the contract requirement or the discrepancy should be resolved.

Answer Options
A
The certificate holder name alone should be changed while the lower coverage limit remains.
B
The subcontractor can start work because any certificate amount is acceptable once a certificate is on file.
C
Coverage limit.
D
The contractor should wait until final payment to compare certificate limits with the subcontract.

Why This Is the Correct Answer

The certificate should show coverage meeting the contract requirement or the discrepancy should be resolved.

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