Subcontractor insurance: what GCs require, and where coverage breaks
General contractors ask for more than a certificate. They ask for specific limits, endorsements and terms, and your policy has to keep up as your work changes. Here's what subcontractors typically carry, and the gaps we see most.
Insurance subcontractors typically carry
What's typical and what's commonly required. Your trade, state, contracts and insurer decide the details.
| Coverage | What it covers | Often required by | Typical limits |
|---|---|---|---|
| General liability | Injury to other people and damage to their property caused by your work, including after the job is finished (completed operations). | GCs, property owners, many licensing boards | $1M per occurrence / $2M aggregate. Larger jobs often ask for more. |
| Workers' compensation | Medical costs and lost wages when an employee is hurt on the job. | State law in almost every state once you have employees (Texas is the main exception), and most GCs | Set by state law. Employer's liability is often $1M. |
| Commercial auto | Vehicles you own or use for work: trucks, vans and trailers. | State law, and GCs for vehicles on site | $1M combined single limit is common in contracts. |
| Umbrella or excess | Extra limits on top of your general liability, auto and employer's liability. | Larger GCs and commercial projects | $1M to $5M. |
| Tools and equipment | Your tools and equipment at job sites, in storage or in transit (inland marine). | Rarely required, commonly carried | The replacement value of your tools. |
Contract terms that decide whether you are covered
Additional insured
The GC is added to your policy by endorsement, for ongoing work and often for completed work too. A certificate alone doesn't do this.
Waiver of subrogation
Your insurer gives up the right to recover what it paid from the GC. It needs an endorsement on your policy.
Primary and non-contributory
Your policy pays first, before the GC's own insurance is touched.
Per-project aggregate
Your aggregate limit applies to each job separately, so one project can't use up the limit for all the others.
Where subcontractor coverage breaks
The policy was right when it was bought. These are the changes that most often leave a gap.
You took on a new trade
Policies are written for the work you described. Roofing, excavation or other higher-risk work you added later may be excluded.
The GC isn't really an additional insured
The certificate names them, but the endorsement is missing or only covers ongoing work, not completed work.
Your own subs don't carry insurance
At the premium audit, insurers often charge you for 1099 subs who can't show their own certificates.
New trucks or drivers aren't on the policy
Vehicles and drivers added mid-year are easy to forget until there's an accident.
Limits below the contract
A new GC or larger job asks for higher limits than your policy has.
A carpentry subcontractor starts taking roofing jobs. Their general liability policy is classified for carpentry only. When a new roof leaks and damages a client's home, the claim is denied, and the business pays the repair bill itself.
Check your coverage for gaps like this →Frequently asked questions
What insurance does a subcontractor need?
Most subcontractors carry general liability, workers' comp and commercial auto. Contracts often add an umbrella and specific endorsements, such as additional insured and waiver of subrogation. What applies to you depends on your trade, your state and your contracts.
Do subcontractors need workers' comp if they have no employees?
It depends on the state. Owners can often exclude themselves, but many GCs still require coverage, and a GC's insurer may charge the GC for subs who don't have it.
What is an additional insured endorsement?
It's a change to your policy that extends your coverage to another party, usually the GC or property owner, for claims arising from your work. It has to be on the policy itself; a certificate only summarizes it.
Does a certificate of insurance prove I'm covered?
A certificate is a snapshot of your policy on the day it was issued. It doesn't change the policy, so if an endorsement is missing, the certificate doesn't fix it.
Why did my premium audit charge me for subcontractors?
Insurers often treat uninsured subcontractors as your employees at audit time and charge premium for their pay. Collecting current certificates from your subs usually prevents this.
This page is general information about typical coverage and common requirements. It is not insurance or legal advice, and it is not a recommendation to buy any policy. Requirements vary by state, contract and insurer.