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All of my subcontractors are Insured, why do I need General Liability Insurance?


I get this question from our General Contractors (GC) who Subcontract out all of their work. It is a good question. Below are a few potential issues that could arise and the importance to have your own quality General Liability Coverage in place to protect your business.


  1. Coverage and defense costs. Accidents do happen no matter how careful we are. General Liability Insurance protects the GC against lawsuits or claims arising from property damage and bodily injury.

  2. Who is liable the Contractor or the Subcontractor: GC’s assume responsibility for the work involved and is considered liable for the actions of their Subcontractor’s; therefore a GC should always ensure the Subcontractor is insured properly. If your Subcontractor purchased limited coverage, that could leave your business exposed to potential liability arising out of their work.

  3. What if your Subcontractor’s policy cancels: You may have received a valid certificate of insurance from your Subcontractor at the beginning of your project but if the policy cancels for any reason and the Subcontractor does not have coverage at the time of loss, you can be held legally liable for actions of the Subcontractor that caused injury or property damage.

  4. What if the Subcontractor’s policy limits are too low to cover a loss: If your Subcontractor has a legitimate policy but has low limits and there are exclusions that do not cover the work being done then you will be responsible for the shortfall. That is why it is crucial for GC’s to have a knowledgeable Insurance Agent that can help protect their business.


A responsible General Contractor takes care and invests in his/her reputation. Protect your business. Call or email us for your free insurance quote!



303-991-7177 | office@ahernagency.com

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