One of the most common questions we get from contractors is: “Who covers my subcontractors?”

The answer is simple: they need to cover themselves.

When you hire a subcontractor, they must carry their own General Liability and Workers’ Compensation coverage. Their limits should be equal to or higher than your limits - and you should request a certificate of insurance naming your company an Additional Insured. If they don’t, the responsibility falls on you — which means their payroll gets added to your policy during audit time. That can result in thousands of dollars in additional premium charges you weren’t expecting.

Here’s why this matters:

General Liability – If a subcontractor damages property or causes injury on the job, and they don’t have their own policy, your insurance company will treat them as your employee for rating purposes. You’ll end up footing the bill.

Workers’ Compensation – Even if you only hire a subcontractor for a short job, if they don’t have their own coverage, your carrier will assign their payroll to your policy. That means higher premiums, possible claims against your record, and unnecessary risk to your business.

The bottom line: always require a Certificate of Insurance (COI) from your subs. It’s not just paperwork — it’s financial protection for your business.