Texas Contractor Resources
When Is a Subcontractor Actually Covered?
Most contractors assume their GL covers their subs. Usually, it doesn’t. Here’s how to know for sure.
FastGeneralLiability.com · Updated March 2026
The short answer: In most cases, subcontractors are not covered under your GL policy. Coverage depends on how they work, what they do, and whether they carry their own insurance. Walk through this checklist to know where you stand.
Step-by-Step
Coverage Workflow
Work through each question for any sub on your job site.
START HERE
Question 1
Are they on your payroll as an employee?
YESCovered under your GL + WC exposure. Treat as employee labor.
NO → continueThey’re not an employee. Move to Q2.
Question 2
Do they carry their own GL and WC insurance?
YES → stopNOT covered under your policy. Collect their COI. Request Additional Insured status if the job requires it.
NO → continueThey have no coverage of their own. Move to Q3.
Question 3
Do they work under your direct supervision like a 1099 laborer?
YES → limitedMay be treated as uninsured labor. Limited coverage possible — but your carrier may charge more and could dispute claims.
NO → continueThey operate independently. Move to Q4.
Question 4
Do they perform a different trade or specialty work?
YES → stopNOT covered. Different trades must carry their own GL/WC for their scope of work.
NO → continueSame trade as you. Move to Q5.
Question 5
Do they perform high-hazard work? (roofing, electrical, concrete, hot work, above 2 stories)
YES → stopNOT covered. High-hazard subs must carry their own insurance — full stop.
NO → continueLower hazard work. Move to Q6.
Question 6
Are they listed on your policy as insured labor or included in your subcontractor cost?
YES → limitedLimited coverage — only for your operations. Not covered for their own negligence. Not an Additional Insured.
NO → stopNOT covered. End of the line.
Summary
Covered vs. Not Covered
The rare exception — and the common default.
✅ Covered (Rare)
- Acts and works like an employee
- Directly supervised by you
- Performs the same trade
- Included in your payroll or exposure
- Carrier explicitly allows uninsured subs
🚫 Not Covered (Default)
- Runs their own business
- Performs their own trade
- Specialty or high-hazard work
- Works independently — not supervised
- Not listed on your policy
- Carries no GL or WC of their own
Carrier default: NEXT, Coterie, Hiscox, Thimble, and most modern online carriers treat subcontractors as not covered unless explicitly included in your policy exposure. When in doubt — require a COI from every sub before they start work.
Protect Yourself
3 Rules Every Contractor Should Follow
📄
Always collect a COI. Every subcontractor should hand you a current certificate of insurance before setting foot on your job site. No COI, no work.
🔗
Request Additional Insured status. On larger projects, ask to be named as an Additional Insured on your sub’s policy. This protects you if their work triggers a claim.
📋
Disclose subs on your application. If you use uninsured labor, tell your carrier upfront. Hiding it creates a dispute at claim time — and can void your coverage.
Not sure where your subs stand?
Talk to a specialist. We’ll review your policy and make sure your real exposure is properly covered.