Subcontractor insurance requirements: a checklist for general contractors

What insurance should you require from subcontractors?

Requirements vary by trade, project size, and what the project owner mandates, but most general contractors build their standard around four core policies. The goal is simple: if a subcontractor causes injury or damage, their insurance—not yours— should respond. Each requirement below should be written into your subcontract so it is enforceable, then confirmed on a certificate of insurance before the sub sets foot on site.

• Commercial general liability (CGL)— covers third-party bodily injury and property damage from the sub’s operations.
• Workers’ compensation— covers the sub’s employees for on-the-job injuries; usually required by state law.
• Commercial auto liability— covers vehicles used for the work, including owned, hired, and non-owned autos.
• Umbrella / excess liability— sits on top of the primary policies to reach higher limits when the contract demands them.

Subcontractor insurance requirements checklist

Use this ordered checklist to verify a subcontractor before they start—and again at each renewal. Working top to bottom keeps your review consistent across every sub.

1. Define your requirements in writing. List the required coverages, minimum limits, and endorsements in your subcontract so every sub is measured against the same standard.
2. Collect a current ACORD 25 certificate. Ask each subcontractor for a certificate of insurance from their agent, naming your company as certificate holder.
3. Check coverage types and limits. Confirm general liability, auto liability, workers’ compensation, and umbrella/excess coverage meet or exceed your minimums.
4. Verify additional insured and waiver of subrogation. Confirm your company is named as additional insured (ideally with a CG 20 10 / CG 20 37 form) and that the policy includes a waiver of subrogation where required.
5. Confirm effective and expiration dates. Make sure every policy is active for the full duration of the subcontractor’s work on the project.
6. Re-verify before each policy expires. Track expiration dates and request a renewal certificate before any coverage lapses.

What coverage limits are typical?

There is no single legally mandated limit—limits are set by the contract and the project owner. A widely used starting point for general liability is $1,000,000 per occurrence and $2,000,000 aggregate, with auto liability often at $1,000,000 combined single limit and workers’ compensation at statutory limits plus employer’s liability. Larger or higher-risk projects raise these figures, frequently using an umbrella policy to reach $5,000,000 or more. Set your numbers to the job; do not assume a sub’s default policy meets them.

Why additional insured and waiver of subrogation matter

Two endorsements do most of the work of actually protecting you. Additional insured status extends the subcontractor’s policy to cover your company for claims arising out of the sub’s work—ideally written on a blanket or scheduled form such as CG 20 10 (ongoing operations) and CG 20 37 (completed operations). A waiver of subrogation stops the sub’s insurer from later trying to recover its payout from you. Many contracts also require primary and non-contributory language so the sub’s policy pays first. A certificate that lists high limits but omits these endorsements can leave a real gap.

How to verify requirements on the COI

The certificate you collect is typically an ACORD 25form. Read it against your written requirements rather than just filing it: confirm each coverage line, check that limits meet your minimums, look for the additional insured and waiver boxes (and request the actual endorsement pages when in doubt), and confirm the policy dates span the sub’s entire scope of work. The single most common failure is not the initial check—it is missing a policy that quietly expires mid-project. That is why tracking expiration dates is as important as the first review. Our guide to tracking certificates of insurance walks through a repeatable system, and if a spreadsheet is your current tool, see why a COI spreadsheet breaks down.

Wardlyautomates this exact checklist: it reads each ACORD 25, grades it A–F against the requirements you set, flags missing endorsements, and monitors every expiration date—free for unlimited subcontractors. Compare it with other tools on our comparison hub, or start from the Wardly homepage.

General information, not legal or insurance advice.