What Is a Certificate of Currency? A Guide for Hiring Contractors
A certificate of currency is a short document from an insurer or broker that confirms an insurance policy is in force. If you engage contractors, it is the usual way to see that they hold the insurance your contract asks for.
What a certificate of currency is
It confirms that a particular policy is in force, and it can be issued at any point during the policy period. It is usually issued by the broker who arranged the policy, and sometimes by the insurer itself (Department of Defence guidance note).
It is not the policy. It does not list the full terms, conditions or exclusions, and where the certificate and the policy disagree, the policy usually wins (same guidance note).
The ones you usually ask contractors for
Public liability. This covers the contractor if someone is injured or killed, or has property damaged, because of their work. Some states and territories require it for certain occupations (business.gov.au).
Workers compensation. Employers must hold it with an authorised insurer (business.gov.au). The certificate comes from the state scheme, such as WorkCover Queensland, icare in NSW or WorkSafe Victoria, which notes that a certificate is often needed when hiring a contractor or getting on a building site.
WorkSafe Victoria notes that only employers who must register have one. Workers compensation does not cover a sole trader themselves, so a contractor with no employees may have nothing to send.
Professional indemnity. This covers legal costs when a client claims the contractor's advice or services caused them a loss. It is mandatory for some professions (business.gov.au). It matters most for contractors who advise, design or consult.
What to check on one
- Insured name and ABN. They should match the contractor named on your contract, not a related business or an old trading name. Workers compensation certificates from WorkCover Queensland and icare both show the business name and ABN.
- Policy type. Public liability, workers compensation or professional indemnity, whichever you asked for.
- Period of insurance. Your job should fall completely inside it. Note the end date: that is your expiry date.
- Limit of liability (sum insured). Check it against what your contract requires. A certificate issued for a particular contract may show only the limit that contract requires, and the limit shown does not mean claims during the year have not used some of it up (Defence guidance note).
- The insurer. The insurer's name should be on it, not just the broker's.
- The work it covers. The description of the insured's business should cover the work they will do for you. A landscaping description does not obviously cover tree felling.
If you are unsure whether a policy covers the work, ask the contractor's insurer or broker.
Why the one on file goes stale
A certificate is only evidence that the policy was in force on the date it was issued (Defence guidance note). After that, the policy can lapse, end early or renew on different terms, and the PDF in your inbox will look exactly the same.
Most insurance renews every year, so you need a new certificate each year (same guidance note). Workers compensation policies with WorkCover Queensland and icare renew each year too.
How to keep them current
- Record the expiry date when the certificate arrives, not just the file.
- Ask for the renewal before it lapses. A few weeks ahead gives the contractor time to get it from their broker. icare, for one, sends employers a copy in their renewal pack six weeks before the policy renews.
- Check the new one the same way as the first. Limits, insurers and business descriptions change at renewal.
Where WorkZerk fits
WorkZerk's Australian contractor pack asks for a public liability certificate of currency and, optionally, a workers compensation certificate, each with its expiry date. Each document shows as current, expiring or expired, and WorkZerk can email the contractor before it expires and again after. It reads the expiry date on the upload and flags it when it differs from the date typed in, but it does not check the policy with the insurer: a person approves every document. More on contractor compliance and contractor onboarding in Australia.