> ## Documentation Index
> Fetch the complete documentation index at: https://watchmycover.com/docs/llms.txt
> Use this file to discover all available pages before exploring further.

# How it works

> From your requirements to a verdict and an action: the five steps behind every subcontractor's status.

Every status in WatchMyCover comes from the same five steps.

```mermaid theme={null}
flowchart LR
  A[Requirement template] --> C[Rules]
  B[Certificate data] --> C
  C --> D[Verdict and findings]
  D --> E[Action: chase, review, record]
```

## 1. Requirements

A [requirement template](/docs/requirements/templates) is your subcontract's insurance article, written down once: which [coverages](/docs/requirements/coverage-types) are mandatory, the minimum each-occurrence and aggregate limits, and which [endorsements](/docs/requirements/endorsements) the contract demands. You assign one template to each subcontractor. A subcontractor with no template cannot be judged, and shows as **Non-compliant** until one is assigned.

## 2. Certificate data

Someone on your team reads the certificate (usually an ACORD 25) and records it: insurer, issue date, and for each coverage the policy number, limits, effective and expiry dates, and how each endorsement is evidenced. WatchMyCover does not read documents itself. Data can also come from a [CSV import](/docs/subcontractors/import-csv).

A subcontractor can have several certificates in force at once, for example general liability and workers' compensation from different carriers, or a renewal recorded before the old policy ends. Each coverage is judged on the policy in force today. See [Renewals and several certificates](/docs/certificates/renewals).

## 3. Rules

The same checks run on every subcontractor, in the same order, whenever something changes (a certificate recorded, a template edited, a setting changed) and on an hourly sweep, so an expiry is noticed on the day it happens. Dates are judged on the calendar day in your organization's time zone.

The checks, all explained in [Every finding explained](/docs/certificates/findings):

* Is a template assigned, and is there a certificate at all?
* Is the certificate older than 365 days, or dated in the future?
* For each coverage the template lists: is it on the certificate; is it in force today; is it expiring inside your warning window; are the limits at or above the minimums; is each required endorsement evidenced, and how?
* Is anything carried that the template does not ask for? (Shown for information only.)

## 4. Verdict and findings

The findings decide one of five statuses:

| Status             | Meaning                                                                             |
| ------------------ | ----------------------------------------------------------------------------------- |
| **Non-compliant**  | At least one definite failure on a mandatory coverage.                              |
| **Needs review**   | Nothing definitely failed, but the certificate cannot settle a question on its own. |
| **Expiring soon**  | Compliant today, with a required policy expiring inside the warning window.         |
| **Compliant**      | Every requirement is met.                                                           |
| **No certificate** | Nothing has been recorded yet.                                                      |

Each finding carries what was required, what the certificate provided, and a sentence saying why. More in [Verdicts explained](/docs/certificates/verdicts).

## 5. Action

What happens next depends on the finding:

* **An upcoming expiry** is chased on a ladder: 30, 14, 7 and 1 days before, and once overdue.
* **A gap** (missing coverage, short limit, missing endorsement, no certificate) is chased straight away.
* **A question** (an endorsement only stated on the certificate, a certificate over a year old) is chased with a request for the documents that settle it.
* **A certificate sent back** through the upload link waits on the subcontractor's page for someone to read it and record it.

Chasing is off until you switch it on. See [How chasing works](/docs/chasing/how-chasing-works).