General Liability vs. Workers' Comp: What to Require From Subs

General liability covers third-party injury and property damage caused by a subcontractor's work; workers' compensation covers the sub's own employees when they're hurt on the job. Most GCs should require both — and verify both on the certificate — before a crew mobilizes.

These two coverages get conflated because they both show up on the same ACORD 25. They solve different problems. Mixing them up is how you end up "fully certified" on paper and exposed on the claim that actually happens.

What general liability (CGL) is for

Commercial general liability responds when the sub's operations injure someone who isn't their employee, or damage someone else's property. Classic jobsite examples:

• A passerby is hurt by falling material
• A finished unit is damaged by a sub's work
• A claim alleges the sub's completed work caused a loss after they left

On the certificate, you care about occurrence limits, aggregates, and whether the form matches what your subcontract demands. For how to read the form itself, see how to read a certificate of insurance (ACORD 25).

CGL is also where additional insured status usually lives — and a checkbox on the certificate is not the same as an endorsement. Details: additional insured endorsements.

What workers' compensation is for

Workers' comp covers the subcontractor's employees for work-related injuries. It is not a substitute for general liability, and general liability is not a substitute for workers' comp.

Why GCs care even when the injured worker isn't "their" employee:

1. Uninsured injured workers often look for a deeper pocket — frequently the GC or owner.
2. Many states and contracts treat missing workers' comp as a hard stop for mobilization.
3. Owner and lender packages routinely require proof of workers' comp for every trade on site.

On the certificate, confirm statutory coverage is shown and that the named insured matches the entity in your subcontract.

Side-by-side

	General liability	Workers' compensation
Protects against	Third-party injury / property damage	Employee work injuries
Typical form section	CGL on ACORD 25	Workers' compensation section
Common GC add-ons	Additional insured, waiver of subrogation	Statutory compliance verification
Failure mode if missing	Your GL may be pulled into a third-party claim	Uninsured employee injury lands upstream

You need both columns filled — not one "insurance" row in a spreadsheet.

What to require in the subcontract

Spell out, in plain contract language:

1. Minimum CGL limits (and umbrella if the project needs it)
2. Workers' compensation as required by law for the sub's employees
3. Auto liability if they drive to site
4. Additional insured / waiver language where you need it
5. Certificate + endorsement delivery before mobilization

Then enforce it the same way on every trade. Selective enforcement is how gaps open on the busiest weeks.

How to verify without drowning in PDFs

1. Collect the COI before the sub sets foot on site.
2. Confirm named insured, CGL limits, workers' comp presence, and expiration dates.
3. File endorsements for special status — don't trust checkboxes alone.
4. Set renewal alerts 30+ days out so you're not discovering lapses mid-project.

TradeGuard tracks both coverages per sub, warns before expiry, and lets subs upload renewals so your admin isn't the only person reading certificates. Start a free trial if you want that on your current roster.

FAQ

Do subcontractors need both general liability and workers' comp?

In most cases yes — GL for third-party loss, workers' comp for their employees. Your contract and state rules control the exact requirement.

Is workers' comp the same as liability insurance?

No. They cover different people and different risks. One certificate can show both, but missing either is still a gap.

What if a sub says they're a sole proprietor with no employees?

Rules vary by state and by your contract. Don't assume "no employees" means "no workers' comp obligation" without checking the jurisdiction and your owner's requirements.

Where do I see these coverages on a COI?

On a standard ACORD 25: CGL in the general liability block, workers' compensation in its own section — verify both before mobilization.