Subcontractor insurance requirements by trade

Updated October 2026. Written for US construction and property firms.

What insurance should you require from each subcontractor, and what happens if they let it lapse? This page gives typical minimums by trade in one table, with every term explained in plain words.

What insurance should I require from subcontractors?

At minimum: commercial general liability (commonly $1M per occurrence and $2M aggregate), workers' compensation at statutory limits for any sub with employees, and commercial auto if they drive for the job. Add umbrella, professional liability, or pollution liability for specific trades. Put exact requirements in the subcontract.

What are typical insurance minimums by trade?

Most general contractors ask every sub for general liability of $1 million per incident and $2 million per year. They also require workers' comp at state-required levels and $1 million of auto coverage. High-risk trades like roofing, grading, concrete and crane work usually must add an umbrella policy of $2 to $5 million.

These are typical figures drawn from published subcontractor insurance requirements of general contractors such as Robins & Morton, W.L. Butler and MYCON. Your contract, your owner and your lender set your real minimums. Check with your broker.

What the table terms mean

• $1M / $2M. $1 million per occurrence, the most paid for one incident. $2 million aggregate, the most paid in total during the policy year.
• Statutory. The workers' comp benefits your state's law requires. There is no dollar figure to choose.
• EL. Employers' liability, the part of a workers' comp policy that covers lawsuits from injured employees. It does have dollar limits.
• CSL. Combined single limit, one limit that covers both injuries and property damage from a vehicle accident.
• Umbrella. An extra policy that pays after the general liability, auto or employers' liability limits run out.

Which endorsements should I require from subcontractors?

An endorsement is a written change to an insurance policy. Most general contractors require three. They want additional insured status, so the sub's policy covers them. They want a waiver of subrogation, so the sub's insurer cannot sue them. They want primary and noncontributory wording, so the sub's policy pays before theirs does.

The certificate alone does not prove any of these. Ask for the endorsement pages. Our guide to additional insured vs certificate holder explains why.

What happens if a subcontractor's insurance lapses during my project?

The risk transfers to you. Injury or damage claims can land on your own general liability policy, lapsed subs can fail owner and lender compliance requirements, and construction lenders often withhold draws until valid certificates are back on file. Some owners can also stop work until the gap is closed.

Why do uninsured subcontractors raise my workers' comp premium?

At your workers' comp audit, the insurer treats payments to subs who lacked their own coverage as payroll to employees and charges premium on it. Keeping valid COIs with workers' comp on file for every sub is what prevents that surcharge.

How do I make sure subcontractors meet the requirements?

Write the exact requirements into every subcontract. Collect a certificate before the sub gets site access, and check it against the table for their trade. Ask for endorsements where your contract requires them. Then track each expiration date and request a renewal certificate 30 days before it. No current certificate should mean no site access.

1. Send the requirements with the bid package. Our COI request email template lists them for the sub's agent.
2. Compare the certificate to your minimums before the start date.
3. Log every policy and expiration date in a tracker. Our free COI tracking spreadsheet is a good start.
4. Chase renewals before they lapse, not after.