Requirements
Subcontractor insurance requirements: what GCs ask for
If you are bidding subcontract work, the insurance exhibit decides whether you can start on day one. This guide covers the policies, limits and endorsements general contractors usually ask for, what happens when a sub falls short and what it typically costs.
Where subcontractor insurance requirements come from
Two sources set the rules. State law mostly governs workers’ compensation and, in some trades, licensing. The subcontract governs everything else: which liability policies you carry, the limits and the endorsements that name the general contractor and project owner.
Florida shows how far state law can reach. Under section 440.10 of the Florida Statutes, when a contractor sublets work, the employees of the contractor and its subcontractors are treated as working in one business, and the contractor must pay workers’ comp benefits to any sub’s employees who are not covered. The same section requires the contractor to collect evidence of workers’ comp from each subcontractor, or a copy of the exemption certificate when a corporate officer has elected to be exempt.
Typical limits in a subcontract
Limits vary by trade, project size and owner or lender demands. The figures below are the common baseline described by Grit Insurance and Docutrax in 2026; your contract’s exhibit is what counts.
Riskier trades see higher numbers. Docutrax lists $1 million per occurrence and $2 million aggregate as typical for landscaping, flooring and painting; $2 million and $4 million plus an umbrella for roofing, electrical, HVAC, excavation and concrete; and $5 million to $10 million for structural steel, crane and demolition work. Both sources say general liability should be written on an occurrence form, because construction claims often surface years after the job.
| Policy | Typical requirement |
|---|---|
| General liability | $1,000,000 per occurrence, $2,000,000 aggregate, occurrence form |
| Products and completed operations | $2,000,000 aggregate |
| Workers’ compensation | Statutory limits for the state where the work is done |
| Employers liability | $1,000,000 each accident, disease per employee and disease policy limit |
| Commercial auto | $1,000,000 combined single limit, owned, hired and non-owned vehicles |
| Umbrella or excess | $1,000,000 to $5,000,000, following form over GL, auto and employers liability |
The endorsements behind the certificate
Limits alone rarely satisfy a general contractor. Docutrax points out that if the general contractor is not an additional insured, even a $5 million policy pays nothing to it directly. These are the clauses most subcontracts list:
- Additional insured for ongoing operations, usually ISO form CG 20 10 or a blanket version such as CG 20 33. It covers the general contractor while your work is in progress.
- Additional insured for completed operations, usually CG 20 37. IRMI notes that CG 20 10 alone gives the additional insured no coverage for injury or damage after the work is finished, which is when many defect claims appear.
- Primary and non-contributory, often CG 20 01. Your policy pays first, and your insurer cannot ask the general contractor’s insurer to share the loss.
- Waiver of subrogation, often CG 24 04 on general liability and matching endorsements on auto and workers’ comp. Docutrax notes that several states restrict waivers on workers’ comp.
- Per-project aggregate, which gives each job its own aggregate limit so claims on other jobs cannot use it up.
What happens if a subcontractor is uninsured
The cost usually lands back on the sub. In Florida, a contractor who pays benefits to an uninsured subcontractor’s workers can recover all benefits paid or payable plus interest from that subcontractor under section 440.10, unless the two agreed in writing that the contractor would provide coverage.
Premium audits are the other trap. North Carolina’s workers’ comp Basic Manual makes a contractor responsible for benefits to employees of its uninsured subcontractors and requires the insurer to charge the contractor extra premium for each sub without proof of coverage. Without payroll records, the charge is based on a share of the subcontract price. General contractors pass that charge on or stop hiring the sub.
| Type of job | Minimum treated as payroll |
|---|---|
| Mobile equipment with operators | 33 1/3% of the subcontract price |
| Labor and material | 50% of the subcontract price |
| Labor only | 90% of the subcontract price |
| Piecework | 100% of the subcontract price |
Owner-only subs and workers’ comp
A one-person subcontractor may not need workers’ comp under state law, but the subcontract can still require it. Grit Insurance notes that on commercial job sites the contract typically overrides an owner or small-crew exemption.
Some general contractors accept an exemption instead. Florida’s statute lets a corporate subcontractor hand over its officer’s exemption certificate. If the contractor insists on a policy, ask about a minimum-premium workers’ comp policy.
What meeting the requirements costs
Insureon reports these median monthly premiums for contractors who buy through its platform: $83 for general liability, $115 for a business owner’s policy, $160 for workers’ comp, $270 for commercial auto and $92 for a commercial umbrella. For general liability, 44% of its contractor customers pay less than $75 a month and 78% pay $150 or less.
Your price depends on your trade, payroll, state, claims history and the limits the subcontract demands. Higher per-occurrence limits, a large umbrella and endorsements scheduled job by job all add to the bill.
How to meet subcontract requirements without overpaying
Most savings come from planning before you bid, not after you win the job.
- Read the insurance exhibit before you price the job, and ask for changes before you sign.
- Ask for blanket additional insured, primary and non-contributory and waiver of subrogation endorsements so each new general contractor does not need a policy change.
- Set your umbrella at the limit most of your contracts require rather than raising it job by job.
- Keep general liability on an occurrence form and keep coverage continuous between jobs.
- Collect certificates from your own lower-tier subs so you are not charged for them at audit.
- Compare several insurers. A broker such as Florin can compare quotes for the coverage your subcontracts require.
Frequently asked questions
Are subcontractors covered under the general contractor’s insurance?
Usually not. In some states the general contractor’s workers’ comp ends up paying an uninsured sub’s injured workers, but North Carolina’s rules charge the contractor extra premium for it and Florida lets the contractor recover the benefits from the sub.
Can a subcontractor negotiate insurance requirements?
Often, if you raise it before signing. General contractors may accept lower limits or blanket endorsements on smaller jobs, but once the subcontract is signed you are bound by its exhibit.
How long does a subcontractor have to keep completed operations coverage?
As long as the subcontract says. Docutrax recommends that general contractors require completed operations coverage for a defined period after the job, tied to the state’s statute of repose for construction claims.
What is the difference between CG 20 10 and CG 20 37?
CG 20 10 makes the general contractor an additional insured while your work is ongoing. CG 20 37 extends that status to claims from work you have already completed, which is why most subcontracts ask for both.
Figures are third-party estimates and examples, not quotes. Coverage depends on the policy terms and underwriting, and rules vary by state.