What Insurance to Require From Subcontractors (and Put in the Contract)
6 min read · Updated June 20, 2026
Most of the subcontractor problems that show up at audit — or after an injury — trace back to one gap: requirements that were never written down or verified. Here’s the insurance to require from every sub, and how to make it stick in the contract.
The coverage to require
- Workers’ comp — a certificate showing the sub’s own WC line (or a valid exemption), with limits and dates that cover the work. This is what keeps them off your audit.
- General liability — for third-party injury and property damage, with adequate limits.
- Additional-insured status on the sub’s GL where you want protection extended to you. Holder vs. additional insured →
- Waiver of subrogation where your contract requires it. What that is →
Put it in writing
A handshake doesn’t hold up. Your subcontractor agreement should state the required coverages, the minimum limits, that a compliant COI is provided before any work or payment, and that coverage must be maintained for the full job. Written requirements are enforceable; verbal ones evaporate at audit.
Verify, don’t just collect
A certificate on file isn’t protection until you’ve checked the WC line, the limits, and the dates against when the sub actually works. How to read a COI → · how to collect and track them →
What happens if a sub falls short
Don’t let a non-compliant sub start. An uninsured sub’s pay can land on your payroll and their injuries on your liability. The contract and the COI are what keep that risk where it belongs. Check a sub’s coverage →
General information for contractors, not legal or insurance advice. Required coverages and limits vary by project, state, and contract — confirm with your agent or attorney.
Frequently asked questions
What insurance should I require from a subcontractor?
At minimum, a certificate showing the sub’s own workers’ comp line and general liability, with adequate limits and dates covering the work — plus a waiver of subrogation and additional-insured status on the GL where your contract calls for it.
Should subcontractor insurance requirements be in the contract?
Yes. Put the coverage types, minimum limits, COI-before-work, and waiver/additional-insured requirements in writing so they’re clear and enforceable before the job starts.
What happens if a sub doesn’t meet the requirements?
Don’t let them start. Otherwise you risk their uninsured pay landing on your workers’ comp audit and their injuries becoming your liability. Collect compliant proof first.
See your own exposure — free
Two free tools, no signup: estimate your audit surprise, and check whether your subs’ COIs actually protect you.
Related guides
Wrap-Up Insurance (OCIP/CCIP): How It Changes Subcontractor Coverage
On big projects, a wrap-up policy can cover everyone at once. Here’s what OCIP and CCIP mean, what they cover, and how to keep your audit from double-charging that payroll.
6 min read · Read →How to Collect (and Actually Track) Certificates of Insurance from Subcontractors
Collecting a certificate once isn’t enough — you have to track it against work dates and renewals. Here’s a simple system contractors can run, and how to automate the nagging.
6 min read · Read →Why Your Workers’ Comp Audit Came With a Huge Bill — and Subcontractors Are Usually Why
Got a surprise workers’ comp audit bill? Uninsured subcontractors are the #1 cause. Here’s exactly how it happens and how to stop it.
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