Insurance for construction subcontractors

How insurance looks for construction subcontractors

Subcontractors carry out a trade or package within someone else’s contract: earthworks, drainage, concrete, steel erection, paving and more. Main contractors commonly require them to provide insurance and security before they start work.

Often the first sign of a problem is a request for a certificate of insurance on a short deadline. Knowing what you are being asked for, and why, avoids buying cover you do not need or missing cover you do.

Exposures to assess

These scenarios show where the insurance conversation usually becomes specific for this trade. They are exposures to assess with an insurer, not assurances that any policy will respond.

A main contractor asks for a minimum liability limit
The subcontract states a limit that is higher than your current policy. Check what the limit applies to and whether it can be met.
Are you included in the main contractor’s policy?
The main contractor says its contract works policy extends to subcontractors. Ask for the wording and check whether it covers your tools, plant and liability, as well as the works.
Your tools and plant on someone else’s site
Equipment is left on a site you do not control. Review how theft and damage are treated and which party’s security conditions apply.
Damage you cause to another trade’s work
Your work damages work already completed by others. Consider how the contract and the policies would allocate that loss.
Retention and security
The main contractor holds retention or requires a guarantee. Understand what the subcontract provides and how it is different from insurance.

Covers to discuss

Covers worth raising for construction subcontractors, and why
Cover	Why it may matter
Public liability	The cover main contractors most often require subcontractors to hold.
Contractors All Risk	May be arranged by the main contractor, or by you for your own package, depending on the contract.
Tools and equipment	Your tools and small plant are usually your own responsibility.
Plant All Risk	Machines you bring to site are exposed on someone else’s project.
Employers’ liability	Main contractors often ask subcontractors about employees and statutory compliance.

Information that helps us prepare a quotation

The subcontract and the main contract’s insurance clauses.
The main contractor’s insurance arrangements, if known.
Your package value, duration and the type of work.
Your tools, plant and vehicles.
Your employees and labour-only arrangements.
Any evidence of insurance the main contractor needs, and by when.

Frequently asked questions

If the main contractor has insurance, do I need my own?

Maybe. It depends on whether you are an insured under the main policy, what that policy covers and what your subcontract requires. Ask for the wording and the subcontract’s insurance clause.

What evidence of insurance will I be asked for?

Usually a certificate or confirmation from the insurer that states the cover, the limit, the period and who is insured. Ask the main contractor what it requires, and give yourself time to obtain it.