General liability vs. workers' comp: what to require from subs

General liability pays when a sub's work injures someone who isn't the sub's employee, or damages someone else's property. Workers' comp pays the sub's own employees when they're hurt on the job. From any sub with employees you need both, and you need to see both on the certificate before the crew starts.

General liability: someone else gets hurt

A passerby struck by falling material is a general liability claim. So is a leak from the plumber's work that ruins finished drywall. On the ACORD 25 it's the first block, with limits for each occurrence and in the aggregate, and a separate aggregate for products and completed operations.

It's also where additional insured status lives, and a ticked box on the certificate isn't the endorsement. See what an additional insured endorsement is.

Workers' comp: the sub's own crew gets hurt

Workers' comp pays the sub's employees for work injuries. On the ACORD 25 it's the "workers compensation and employers' liability" row, with PER STATUTE marked and three employers' liability limits beside it.

Their crew is still your problem:

• You can end up as the employer. Many states make a general contractor responsible for an uninsured sub's injured workers. Virginia's statute is one: the contractor "shall be liable to pay to any worker employed in the work any compensation" the worker would have been owed (Va. Code § 65.2-302).
• Your audit can charge you. Insurers that follow NCCI's Basic Manual charge premium on what you paid a sub who can't show workers' comp, and can use the whole subcontract price as payroll when there are no records (Alaska Division of Insurance, Case H 22-01, 2022).

Washington works differently. Its workers' comp comes only from the state through L&I, or from certified self-insurance, so it won't appear on a certificate as a policy from an insurance company (L&I). Check the sub's L&I account with L&I's Verify tool instead. Washington can also hold a general contractor liable for a sub's unpaid premiums (L&I's guide).

Side by side

	General liability	Workers' comp
Pays for	Injury to other people, damage to their property	The sub's own employees' work injuries
On the ACORD 25	The commercial general liability block	The workers' compensation and employers' liability row
What GCs often ask for	Additional insured status; waiver of subrogation	Waiver of subrogation
If it's missing	The claim looks for you and the owner	You may owe the crew's benefits, and premium at audit

When a sub says it has no employees

The answer depends on the state. Virginia, for example, doesn't require workers' comp from an employer that regularly has fewer than three employees (Va. Code § 65.2-101). Texas lets most private employers choose not to carry it at all (TDI).

Even where the sub doesn't need a policy, your audit may still charge you unless you can show why. Ask your insurer what it accepts; in some states that's an exemption certificate. Your subcontract can require workers' comp regardless of what the state requires.

What to write into the subcontract

• General liability limits, with additional insured status for ongoing and, if you need it, completed operations.
• Workers' comp as the law requires, with employers' liability limits, or the proof of exemption your insurer accepts.
• Auto liability if the sub drives to the site or hauls material.
• Certificates and endorsements delivered before the sub mobilizes.

In TradeGuard you set which coverages your subs need. A sub with general liability on file and no workers' comp shows as not covered, with the reason "Gap: no workers' comp certificate".

FAQ

Do subcontractors need both general liability and workers' comp?

A sub with employees usually needs both: general liability for harm to other people and their property, workers' comp for its own crew. Whether workers' comp is required by law depends on the state and the number of employees, and your subcontract can require it anyway.

Is workers' comp the same as liability insurance?

No. They cover different people. One certificate can show both, and a sub missing either one leaves you exposed.

What if a sub has no employees?

Check the state's rule, then ask your own insurer what it accepts at audit. Some states exempt small employers or sole owners, but without proof your audit may still charge premium on what you paid them.

Where are these coverages on a certificate of insurance?

On the ACORD 25, general liability is the first block. Workers' compensation and employers' liability is its own row further down. In Washington, check the sub's L&I account instead.