We hear this one all the time — from both sides.
GCs asking if they really need to require it, and subs wondering if they can skip it to save a few bucks.

The short answer? Yes.
Subs need insurance — and GCs need their subs to have it.
The “why” just depends on which side of the contract you’re on.

Because here’s the thing about risk in construction: it always finds a home. The smart ones make sure it’s not theirs.

The GC’s Side: Risk Flows Up

If you’re the general contractor, you’re responsible for everything that happens on your site — even the work you didn’t personally touch. When a sub makes a mistake, the fallout doesn’t stop with them; it rolls up to you. That’s how liability works in this business.

Insurance is what pushes that risk back down to the person doing the work — the one getting paid for it.

Here’s how things go sideways fast:

1. Lawsuits name everyone.
If an apprentice drops a tool and someone gets hurt, the claim doesn’t stop at the sub. It hits you, the owner, maybe even the property manager. You need your sub’s insurance to kick in — not yours.

2. Accidents happen.
A leak ruins drywall. A ladder cracks a window. It’s all part of the job — until you’re the one writing the check because your sub wasn’t covered.

3. You need subs who can actually pay when something goes wrong.
If they’re uninsured or underinsured, that cost lands on you. Your premiums go up, your reputation takes a hit, and you eat the loss.

That’s why GCs usually require the basics:

General Liability — typically $1M per occurrence / $2M aggregate
Workers’ Comp — if the sub has employees
Auto Liability — for any work vehicles

And then there’s the big one: Additional Insured.
It’s not a separate policy — it’s a clause that extends your sub’s coverage to you. If something happens, their policy helps defend you too. Without it, you’re exposed.

Requiring insurance isn’t red tape. It’s risk management.

The Sub’s Side: Why You Need It Anyway

Even if GCs didn’t require it, carrying insurance is just good business.

You can’t work without it.
Most serious contractors won’t touch uninsured subs. You’re not saving money — you’re cutting yourself out of jobs.

It protects your livelihood.
One accident can wipe out years of work. A ladder through a wall, a helper who gets hurt, a leak that ruins flooring — without insurance, that’s your bill.

It’s more affordable than you think.
For most small trades, it costs less than a day’s work each month. That’s not a luxury — that’s your ticket to stay in the game.

It builds credibility.
Having coverage says you’re a professional who takes safety and accountability seriously. It separates you from the fly-by-nights.

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What Coverage Subs Actually Need

Keep it simple:

General Liability – covers damage or injury caused by your work.
Workers’ Comp – covers employees who get hurt on the job.
Commercial Auto – covers work trucks and trailers (your personal policy won’t).
Tools & Equipment – covers stolen or damaged gear.
Umbrella Coverage – adds an extra safety net on top of everything else.

Common Mistakes

Letting coverage lapse mid-project. If something happens, you’re completely exposed.
Listing the wrong trade. If you write “carpentry” but do roofing too, your claim might get denied.
Forgetting to add the GC as Additional Insured. They’ll shut your work down until it’s fixed.
Not checking coverage on your own subs. If they’re uninsured, the liability flows right back to you.

The Bottom Line

When subs are properly insured, everyone wins.

GCs sleep better knowing risk is contained.
Subs protect their businesses and look more professional doing it.

Insurance isn’t a hoop to jump through — it’s part of running a real operation.

If you’re a GC, verify coverage before anyone steps on site. Track it, update it, and make it part of your process.
If you’re a sub, work with a broker who knows construction. Keep your coverage active and relevant.

Because in this industry, risk never disappears.
It just moves.
And smart builders make sure it doesn’t move toward them.

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Do Subs Really Need Insurance?