Guide
Subcontractor insurance requirements: what GCs usually ask for
Most GCs ask subs for general liability, workers’ comp, commercial auto if they drive, and sometimes umbrella. They also ask for endorsements like additional insured and waiver of subrogation. The dollar limits come from your contract, your owner and your own insurance. Ask your broker for a schedule that matches the risk of each trade.
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Free COI auditThe usual list, in plain English
| Coverage | What it does | When GCs ask for it |
|---|---|---|
| General liability | Pays when the sub’s work injures a stranger or damages someone’s property | Every sub |
| Workers’ comp | Pays for injuries to the sub’s own workers | Every sub with workers, where the law or contract requires it |
| Commercial auto | Covers company vehicles on the road and to the site | Subs who drive or haul |
| Umbrella or excess | Adds more limit on top of the other policies | Bigger jobs or higher-risk trades |
Extras that matter just as much
- Additional insured: lets you claim under the sub’s policy. Here’s the difference from being a holder.
- Waiver of subrogation: stops the sub’s insurer from suing you after it pays a claim.
- Primary and non-contributory: the sub’s policy pays first, before yours.
What about the dollar amounts?
We’re not going to give you a number, because the right one depends on your contract, your owner’s rules and your own policy. Ask your broker for limits by trade. A roofer and a painter don’t carry the same risk.
Not legal or insurance advice. This is general information. Your contract, your state and your policy decide what applies to you. Ask your broker or attorney.
Put it on paper
Build a one-page summary and send it with every bid. Our requirements builder makes one in a minute. State rules change things too. See Texas, Florida and California.
Match the requirement to the risk
| Job type | Typical approach |
|---|---|
| Low risk, no height, no water, no heavy equipment | General liability, workers’ comp, auto if driving |
| Medium risk, like interior remodel or trades that cut or connect | The above, plus completed operations and the three endorsements |
| High risk, like roofing, demolition and excavation | The above, plus umbrella and checks on exclusions |
Our trade pages list the risks for each trade.
Questions for your broker
- What limits should I require for this type of job?
- Which exclusions on a sub’s policy would hurt us on this project?
- Should the sub’s policy be on an occurrence basis?
- How long should completed operations coverage continue after the job?
- Do we need the sub’s subs to carry the same insurance?
Mistakes that make requirements weak
- Asking for a limit but not the endorsements.
- One flat requirement for every job and trade.
- Never rechecking when your contract or owner changes the rules.
- Not writing the requirements down before the bid.
Common starting points
There is no one right number. Your contract, your owner and your broker decide. These are the usual coverages and where people often start:
| Coverage | What it protects | Common starting point |
|---|---|---|
| General liability | Damage or injury to other people from the sub’s work | Many GCs ask for $1 million per occurrence and $2 million total per year, and go higher for risky trades |
| Workers’ comp | The sub’s own workers if they are hurt | Required by state law in most cases. Your state sets the rules |
| Commercial auto | Trucks and vans used for the job | Ask if the sub drives to or on your site |
| Umbrella or excess | Extra limit on top of the other policies | Often for larger or riskier projects |
Treat these as a conversation starter with your broker, not a rule. See umbrella vs excess.
Endorsements to ask for
- Additional insured for ongoing and completed work. See explained.
- Waiver of subrogation. See what it is.
- Primary and noncontributory. See what it means.
Frequently asked questions
What insurance should a general contractor require from subcontractors?
Usually general liability and workers’ comp, plus commercial auto for subs who drive and umbrella on larger jobs. Your contract and broker set the limits.
Do all subcontractors need workers’ comp?
It depends on the state and whether the sub has employees. Some states let owners or small businesses opt out. Check your state rules and your contract.
How much insurance should I require from a subcontractor?
It depends on your contract, the owner and the trade. Many GCs start with $1 million per occurrence and $2 million aggregate for general liability, and ask your broker about higher limits for riskier work.
Do small subs need the same insurance as big ones?
Often the same coverage types, but limits may be scaled to the job. A single requirement for every job is rarely the best fit.
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