Do Subcontractors Need Their Own Insurance?
- johnry8
- Sep 2
- 2 min read
If you’re a subcontractor, you might assume the main contractor’s insurance automatically covers you. In many cases, that’s not true, which could expose you to significant risks. As another thought, some subcontractors wonder if insurance is really worth the extra cost.
The truth is having your own insurance protects not only you and your family’s finances but also your professional reputation. It can also help you win more contracts, since many companies prefer or require subcontractors who are fully insured.
Key Reasons Subcontractors Need Their Own Insurance
1. Protect Yourself Against Liability
Accidents happen. Whether it’s property damage or personal injury, you could be held legally and financially responsible. Public liability insurance ensures you don’t have to pay these costs out of pocket.
2. Fill Gaps in the Main Contractor’s Policy
Even if the contractor has insurance, it may not extend to you. Some policies only cover direct employees, leaving subcontractors excluded.
3. Strengthen Your Professional Reputation
Clients and contractors often prefer subcontractors who take responsibility for their own insurance cover. It shows you’re professional, reliable and serious about protecting both yourself and the project.
4. Comply with Legal and Contractual Requirements
In some industries, having insurance isn’t just optional, it’s required. Certain contracts or licenses mandate that subcontractors carry specific types of insurance.
5. Secure Your Income and Future Work
Without insurance, a single claim could drain your savings or force you out of business.
When Subcontractors Might Not Need Their Own Insurance
There are limited cases where a subcontractor may not need separate insurance for example, if you’re working under very short-term arrangements or if the contractor explicitly includes you in their policy. But even then, it’s risky to assume you’re covered without written proof.
Need help figuring out what else you need for your subcontracting work?