When owners, risk managers and general contractors hire subcontractors, they’re not just buying labor — they’re buying peace of mind. A single site accident or an uninsured subcontractor can bring a project to a halt, cost tens (or hundreds) of thousands, and trigger hard-to-manage claims and litigation. Below is a practical guide to the insurance coverages most often requested from subcontractors on New York-area construction jobs — grouped into liability, workers’ compensation, and auto — followed by what BGES Group offers contractors in New York, New Jersey and Connecticut.
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Liability coverages (what owners and GCs typically require)
Owners and GCs want certainty that third-party bodily injury and property damage exposures are covered and that the downstream insurance will actually respond if something happens. Common requirements and endorsements include:
• Commercial General Liability (CGL)
• Standard coverage for bodily injury and property damage occurring on the job.
• Typical request: minimum limits (commonly) $1,000,000 per occurrence / $2,000,000 aggregate — but larger projects often require higher limits.
• Completed Operations & Products Liability
• Protects the GC/owner for damage or injury caused after work is completed — essential for trades whose work could cause future loss (roofs, waterproofing, mechanical, electrical, etc.).
• Additional Insured (AI) Endorsement — CG 20 10 / CG 20 37 or equivalent
• Owners and GCs will require to be named as Additional Insureds on the subcontractor’s CGL for ongoing operations and increasingly for completed operations as well.
• Often specified to be “Primary & Non-Contributory” so the subcontractor’s policy responds first without contribution from the GC/owner’s policy.
• Waiver of Subrogation
• Owners/GCs often require subcontractors to waive the insurer’s right to subrogate against them for work-related losses. This prevents the insurer from pursuing the owner/GC after paying a claim.
• Pollution Liability / Environmental
• Needed for trades that could release pollutants (painting, roofing, HVAC, fuel handling, waste removal). May be required on certain projects.
• Professional Liability (if applicable)
• For design-build or work with technical specifications (engineers, design-build trade contractors).
• Umbrella / Excess Liability
• Projects frequently require higher limits through umbrella policies (common increments: $5M, $10M) to provide an extra layer over primary CGL.
Workers’ Compensation & Employers’ Liability
Because injuries to workers create immediate exposure to owners and GCs (including stop-work orders or project delays), documentation and limits are critical.
• Statutory Workers’ Compensation
• Proof of statutory workers’ comp coverage for all employees of the subcontractor in the job state(s). In NY this is mandatory for virtually all employers.
• Employers’ Liability
• Provides protection for employee claims not covered by workers’ comp (typical limits requested: $500,000 to $1,000,000; higher exposure jobs may need more).
• Waiver of Subrogation in favor of Owner/GC
• Commonly required so the WC carrier can’t later sue the owner/GC.
• Evidence of Coverage
• Certificates of Insurance plus policy endorsements or letters from the carrier confirming coverage and any waivers.
• Statutory Filings / Certificates for Out-of-State Workers
• For multi-state projects, owners/GCs expect documentation showing proper coverage for employees working across state lines.
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Auto & Transportation Coverages
Site deliveries, equipment movement, and personnel transport create auto exposure.
• Commercial Auto Liability
• Covers owned, hired and non-owned autos used on the project. Limits commonly requested: at least $1,000,000 combined single limit on many projects.
• Hired & Non-Owned Auto Liability (HNOA)
• Essential when subcontractors use rental vehicles or employees’ personal cars for company business.
• Physical Damage / Comprehensive & Collision
• When subcontractor equipment or vehicles will be on site, owners may ask for evidence of physical damage coverage.
• Motor Truck Cargo (if applicable)
• For contractors hauling other parties’ materials.
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Certificates, Endorsements & Administrative Expectations
Beyond the bare coverages, owners and GCs typically require:
• A Certificate of Insurance (COI) naming owner/GC as Additional Insured and showing required limits.
• Endorsement copies (not just the COI) proving Additional Insured, Primary & Non-Contributory language, and Waiver of Subrogation.
• Thirty (30) day cancellation (or shorter) notice to the certificate holder — many owners ask for 10/30 day depending on contract.
• Policy review for high-risk trades or large projects — underwriters may be asked to confirm scope.
• Subcontractor safety programs, drug-testing, hot-work permits and loss-control documentation for higher-risk operations.
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Why these protections matter (brief)
When a subcontractor lacks coverage or has inadequate limits, the owner/GC can be exposed to direct financial loss, project delays, and legal fights. Properly structured insurance plus contractual indemnity language and the right endorsements protect the project team and keep work moving.
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How BGES Group helps contractors and owners
BGES Group specializes in construction and contractor insurance throughout New York, New Jersey and Connecticut. We know construction contract language and the coverages owners and GCs insist upon — and we work to bridge the gap between contractual requirements and affordable insurance solutions.
What BGES brings to the job:
• Policy placement & limit structuring — matching coverages (CGL, completed ops, WC, auto, umbrella) to contract requirements so you won’t fail a COI check.
• Certificate & endorsement issuance — fast delivery of COIs and the specific endorsements owners/GCs request (AI, primary/non-contributory, waiver of subrogation).
• Loss control & safety consulting — practical on-site risk-reduction guidance to lower premiums and improve insurability.
• Claims advocacy — when a claim occurs, BGES helps manage the process with carriers to protect the contractor’s and GC’s interests.
• Flexible options for small and large contractors — from single-trade subcontractors to larger firms needing project-specific policies and high-limit umbrella placements.
• Local experience — familiarity with New York City and regional requirements, union/regulatory nuances, and local carriers that underwrite construction risk.
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Final note + contact
If you’re a subcontractor preparing for bids or a risk manager/GC preparing project insurance requirements, getting your insurance structure right before you start work saves time and money.
For help aligning your insurance with contractual requirements or to request a quick policy review, contact:
BGES Group
Phone: Gary Wallach — 914-806-5853
Email: bgesgroup@gmail.com
Website: www.bgesgroup.com
Serving contractors across New York, New Jersey & Connecticut.