Does Construction Insurance Cover Subcontractors’ Mistakes? 

Subcontractors play a key role in keeping construction projects moving. But what happens if a subcontractor makes a mistake that leads to property damage, injury or costly delays? Understanding how construction insurance can respond in these situations can help you make confident, informed decisions about your coverage.

Understanding Coverage for Subcontractors

Construction insurance policies, namely general liability coverage, are designed to cover your business from third-party claims involving property damage or bodily injury. However, coverage for subcontractors’ mistakes isn’t always included by default. In Texas, many policies require that subcontractors carry their own insurance and name your business as an additional insured. If a subcontractor’s error leads to a claim, your policy may only respond if these requirements are met.

Consider these additional key points to make sure you’re covered:

• Subcontractor liability—General liability policies typically exclude coverage for work performed by uninsured subcontractors. If your subcontractor doesn’t have adequate insurance, your business could be financially responsible for their mistakes.
• Contractual requirements—Contracts may require proof of insurance from all subcontractors. Failing to collect and verify this documentation can result in denied claims, potentially leaving your business liable for damages and injuries caused by a subcontractor’s work.
• Policy exclusions—Policies may have specific exclusions for subcontractor work. It’s essential to review your policy’s language to understand what is and isn’t covered.

How We Help Construction Companies in Grand Prairie, TX Manage Risk

Our team at Blackburn Insurance Agency, Inc. works closely with contractors and construction companies across Texas to help them navigate coverage complexities. We can review your contracts, verify subcontractor insurance, and tailor your coverage to address the unique risks of your projects. By taking a proactive approach, we help you avoid costly gaps in protection and keep your business moving forward with confidence. Contact us today to find out more.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.