Run the gate automatically
GateCOI checks every subcontractor COI against your rules and gives your bookkeeper a green/red Cleared for Payment list before Friday checks. Subs email ACORD 25s to verify@gatecoi.com. $59/mo flat, no credit card to start.
Cleared for Payment: the COI checklist to run before Friday vendor checks
"Cleared for Payment" means a subcontractor's certificate of insurance passes every requirement in your subcontract on the day you pay them. The simplest way to enforce it is a COI gate in the weekly check run: before vendor checks go out, every sub is either green (cleared) or red (held until the broker sends a corrected certificate).
Why the gate belongs on Friday
Payment is the one moment a sub is guaranteed to pay attention. Checking COIs only at onboarding misses mid-job expirations; checking at audit time is too late. Tying the check to the payment run means a lapsed policy or missing endorsement is caught before money leaves — and the sub has a reason to get their broker moving.
The Cleared for Payment gate criteria
- 1
Certificate is current and from the producer
A legible ACORD 25 issued by the agent/broker in the PRODUCER box — not a draft, quote, or a copy the sub edited. Keep the producer's email; that's who fixes problems.
- 2
Named insured matches who you're paying
The insured on the certificate must match the entity on the invoice and W-9, including LLC/Inc. A different or sister entity is a hold.
- 3
Certificate holder is your company
Your correct legal name and address in the CERTIFICATE HOLDER box.
- 4
No policy expired — or expiring before this pay period ends
Check every line's dates (GL, auto, WC, umbrella). Coverage has to be in force on the day you release payment. Flag anything expiring in the next 30 days for a renewal chase.
- 5
Limits meet the subcontract
General liability per-occurrence and aggregate at or above your minimums; auto if the sub drives on site; workers' comp present (or a valid exemption on file); umbrella/excess if the contract requires it.
- 6
Endorsement wording is there
Additional insured, waiver of subrogation, and primary & non-contributory where your contract requires them — and endorsement copies on file if your contract asks for them. The boxes on an ACORD 25 alone don't prove coverage.
- 7
Decision is logged
Every sub on this week's check run is marked Cleared (green) or held (red), with the date and reviewer recorded for your auditor.
For a line-by-line walkthrough of the ACORD 25 itself, see how to check a subcontractor certificate of insurance.
When a sub fails: hold payment, chase the broker
- Mark the sub red and hold their payment for this run.
- Email the producer from the PRODUCER box, CC the sub, listing exactly what's missing (expired line, low limit, missing additional insured or waiver wording).
- Release payment only when the corrected certificate (and endorsements, if required) passes the gate.
- Keep the failed and corrected certificates with the decision date and reviewer.
FAQ
What does "Cleared for Payment" mean for a general contractor?
It's an internal status: a subcontractor is Cleared for Payment only when their certificate of insurance passes every requirement in your subcontract on the day you pay them. If anything fails, the payment is held until a corrected certificate arrives.
Why check COIs right before Friday vendor checks?
Payment is your leverage. Once a check goes out, a sub has little reason to chase their broker for a corrected certificate. Putting the COI gate in the weekly check run means expired or deficient coverage gets caught before money leaves, not at audit time.
What should happen when a certificate fails?
Hold the payment, email the producer listed on the certificate (CC the sub) with exactly what's missing, and keep both the failed and corrected certificates on file.
Is an ACORD 25 enough to clear a sub for payment?
The ACORD 25 says it is issued for information only and confers no rights. Many GCs also require the actual endorsements (additional insured, waiver of subrogation) per their contract. Your subcontract and your broker define the requirements.
Can this be automated?
Yes. With GateCOI, subs email their ACORD 25 to verify@gatecoi.com; it's checked against your rules, the sub gets a pass/fail reply, the broker gets chased on deficiencies, and your bookkeeper gets a green/red Cleared for Payment list. $59/mo flat. It's a document-checking tool, not insurance advice.
This guide is general information, not insurance or legal advice. Your subcontract and your broker define what you require.
Get a Cleared for Payment list every Friday
GateCOI runs this gate on every certificate. $59/mo flat, unlimited certificates.