Does General Liability Insurance Cover Subcontractors?

You’ve likely worked with subcontractors if you run a business that relies on outside help. They may handle electrical work, plumbing, painting, or other parts of a job. While hiring them makes projects easier to manage, it also raises an important question — does general liability insurance cover subcontractors?

Knowing the answer can help avoid costly surprises and protect your business from unexpected claims.

What General Liability Insurance Typically Covers?

General liability insurance protects your business against claims made by third parties. This includes people who are not employees, such as clients, vendors, or even someone walking by a job site. Most general liability policies include coverage for:

• Property damage caused during work
• Injuries to non-employees or the public due to business operations
• Legal defense costs if your business is sued for covered damages

This coverage is a basic layer of protection that helps keep your business running, even if accidents happen. However, when subcontractors are involved, things can get more complicated.

Are Subcontractors Covered Under Your Policy?

Many business owners assume that their general liability policy covers everyone on the job, including subcontractors. This is not always the case.

Here are key points to keep in mind:

• Subcontractors are usually treated as separate entities: Most insurance companies do not consider subcontractors part of your staff. This means they are not automatically protected under your general liability insurance.
• Your policy may exclude subcontractor-caused damage: If a subcontractor damages property or causes injury and they are not listed in your policy, your insurance may not pay the claim. You could be held responsible for those costs.
• Some policies allow adding subcontractors. Depending on your policy, you may be able to include subcontractors for an extra cost. This should be clearly outlined in your insurance documents.

Why Coverage Details Matter

Failing to check your policy can lead to problems down the road. For example, if a subcontractor causes damage while working under your contract, the client may hold your business responsible. If your insurance provider denies the claim, you may have to pay out of pocket — even if the mistake wasn’t yours directly.

This is why understanding what your policy covers is essential. Do general liability insurance cover subcontractors on this job early on? If you’re not sure, it’s time to check.

Steps to Protect Your Business

You can ensure you and your subcontractors are appropriately covered.

• Ask for proof of insurance from subcontractors: Before hiring anyone, request a certificate of insurance. This proves they have active general liability coverage on their own.
• Request to be added as an additional insured: Ask the subcontractor to list your business as an additional insured on their policy. This extends coverage to you during the project.
• Review your policy regularly: Contact your insurance provider to confirm what is omitted. Policies can vary, and it’s better to be sure before a problem occurs.
• Document everything: Keep written records of your subcontractors’ insurance details and any agreements related to coverage. This helps if a dispute or claim arises later.

General Liability and Subcontractors by I.C. Insurance Solutions

So, does general liability insurance cover subcontractors? Not always. It depends on your policy terms, the type of work being done, and whether proper steps have been taken to include them in the coverage.

At I.C. Insurance Solutions, we help business owners understand these details and ensure they have the proper protection. Contact us today at 1-800-922-9721 to review your current policy or to explore better ways to stay protected when working with subcontractors.