If you’re a general contractor, you know how important subcontractors are to completing a project. But here’s a critical question: Do subcontractors need their own insurance?
The Short Answer: Yes
In Virginia, subcontractors are considered independent businesses. This means they are responsible for carrying their own coverage, including:
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General Liability Insurance
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Workers’ Compensation (if they have two or more employees)
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Commercial Auto Insurance (if using vehicles for business)
Why It Matters for General Contractors
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If your subcontractor doesn’t carry insurance, you may be held liable for their claims.
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Many project contracts require proof of subcontractor insurance.
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Not verifying coverage could expose your business to lawsuits or unpaid claims.
How to Protect Your Business
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Always request a Certificate of Insurance (COI) from subcontractors.
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Ensure coverage meets the limits required by your contract.
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Work with an insurance agency that helps track and verify subcontractor insurance.
At Brett J Allen Insurance Agency, we help general contractors reduce risk by making sure subcontractors are properly covered. Call us today for guidance on subcontractor insurance requirements in Virginia.
