Do Subcontractors Need General Liability Insurance? What GCs Should Require

Uninsured subs are a hidden liability for general contractors. Learn what coverage to require, what limits are typical, and how to keep certificates current.

Why an uninsured sub is the GC's problem

When a subcontractor damages property, injures a bystander, or causes a loss on your job, the injured party doesn't stop at the sub — they pursue the general contractortoo. If that sub has no coverage, the claim can land on your policy, drive up your premiums, erode your limits, and show up in your liability and workers'-comp audits. Requiring every sub to carry their own general liability insurance is how GCs push that risk back where it belongs.

What to require from every subcontractor

General liability — commonly $1,000,000 per occurrence / $2,000,000 aggregate.
Additional insured statusfor your company on the sub's GL policy (see why that matters).
Workers' compensation where the sub has employees.
A current certificate of insurance on file before work starts.

The real challenge: keeping it current

Getting a certificate once is easy. Keeping every sub's certificate valid — catching expirations, collecting renewals, verifying the additional-insured wording — is where most GCs fall behind. A lapsed certificate is the same as no certificate when a claim hits.

Two ways to close the gap

With a contractor custom link, subs who need coverage buy a compliant policy in minutes and your company is named additional insured on the certificate automatically. Subs who already carry insurance can have their existing certificates collected and tracked in one place — so nothing quietly expires.

Frequently asked questions

Do subcontractors need their own general liability insurance?

In most cases yes. General contractors typically require each subcontractor to carry their own general liability policy and name the GC as additional insured, so the sub's coverage responds first if the sub causes injury or damage.

What insurance limits should a GC require from subs?

A common minimum is $1,000,000 per occurrence and $2,000,000 aggregate for general liability, plus workers' compensation where employees are involved. Requirements scale with project size and risk.

What happens if a subcontractor is uninsured?

If an uninsured sub causes a loss, the claim can fall to the general contractor's policy — raising the GC's premiums and eroding its limits. Uninsured subs can also affect the GC's own workers' comp and liability audits.

How do general contractors keep sub certificates current?

By collecting a certificate of insurance from every sub, tracking expiration dates, and requiring renewal certificates. A custom insurance link automates issuing and tracking these certificates.