It’s one of the most common questions in construction — asked by GCs deciding what to require, and by subs wondering whether they can work under someone else’s policy. The short answer: yes, subcontractors need their own insurance, and both sides of the GC/sub relationship have real money riding on getting this right.
Why subs can’t just ride on the GC’s policy
A general contractor’s general liability policy covers the GC’s liability — not the subcontractor’s. If your work as a sub injures someone or damages property, the claim lands on you, and without your own policy there’s nothing standing between that claim and your business (and often personal) assets.
Meanwhile, GCs who let uninsured subs on site are effectively absorbing those subs’ risk. Their carrier knows it too: at premium audit, GCs get charged for uninsured subcontractor costs as if those subs were employees. Uninsured subs literally raise the GC’s premium.
What insurance do subcontractors need?
- General liability — the universal requirement; virtually every GC contract requires $1M/$2M limits with a certificate of insurance before you start
- Workers’ compensation — required in most states if you have employees; many GCs require it even from owner-only subs, or they’ll deduct the cost of covering you
- Commercial auto — for your work vehicles; personal policies exclude business use
- Tools & equipment — protects your gear on site, in your truck, and in transit
What GCs typically require from subs
Expect the contract to ask for: a current certificate of insurance; the GC named as an additional insured; a waiver of subrogation; and sometimes primary-and-noncontributory wording. These are standard endorsements — an agency that works with contractors can add them quickly, but a policy bought purely on price sometimes can’t, which is how subs lose jobs at the paperwork stage.
For GCs: how to manage sub insurance without headaches
- Collect certificates before subs mobilize — not after
- Track expiration dates; a certificate that expires mid-project is a gap
- Require limits that match your own contract upward requirements
- Keep certificates organized for your premium audit — clean records directly save money
Frequently asked questions
I’m a sole-proprietor sub with no employees. Do I still need insurance?
For general liability, yes — GCs require it regardless of size. For workers’ comp, you may be exempt by state law, but many GCs require coverage anyway or will charge you for it. An owner-included policy often pays for itself in work you don’t lose.
What happens if a GC hires an uninsured sub?
The GC’s insurer typically charges for the uninsured sub’s costs at audit, and any claim caused by that sub’s work can land on the GC’s policy — raising premiums for years.
How fast can a sub get a certificate for a new job?
With coverage in force, certificates — including additional insured endorsements — can usually be issued the same business day. Request one here.
Whether you’re the GC setting requirements or the sub meeting them, we can set up coverage that satisfies the contract the first time. Compare quotes from multiple A-rated carriers.