Your first job for a general contractor: the insurance they'll ask for
You've been doing kitchens and decks for homeowners, and a general contractor has offered you steady work on a bigger site. Then their office sends a three-page insurance requirements sheet, and your current policy fails half of it. This guide translates the sheet, explains why New York's rules make it stricter than other states, and tells you what to buy so the first certificate goes through.
A New York general contractor will ask a new subcontractor for a certificate of insurance showing general liability of at least $1 million per occurrence and $2 million aggregate, the GC and owner added as additional insured for ongoing and completed operations on a primary and non-contributory basis, a waiver of subrogation, workers' compensation proven with form C-105.2 (or a CE-200 exemption) and disability and Paid Family Leave proven with DB-120.1. The policy also has to cover New York Labor Law 240 claims, which the cheapest contractor policies exclude.
The requirements sheet, translated
| What the sheet says | What it means | What you need |
|---|---|---|
| Commercial general liability, $1M / $2M | $1 million per occurrence, $2 million aggregate for the policy year | A GL policy at those limits, classified for the work you actually do |
| Additional insured — ongoing and completed operations | The GC and owner are covered under your policy for your work, during and after | Endorsements CG 20 10 and CG 20 37 (or carrier equivalents), usually blanket "where required by written contract" |
| Primary and non-contributory | Your policy pays first; the GC's policy doesn't share the loss | An endorsement stating exactly that |
| Waiver of subrogation | Your carrier won't sue the GC to recover what it paid | Waiver endorsements on GL and workers' comp |
| No Labor Law / action-over / employee-injury exclusion | The policy must cover claims where the owner or GC is sued for your worker's injury and sues you back | A contractor policy written for New York; the exclusions are common on cheap ones |
| Workers' compensation, statutory; employer's liability $1M | Coverage for your employees; the "statutory" limit is whatever New York law requires | A workers' comp policy, proven on form C-105.2 (not a plain certificate); or CE-200 if you truly have no employees |
| Disability and Paid Family Leave | New York's DBL and PFL, required once you have employees | Proven on form DB-120.1 |
| Commercial auto, $1M | Vehicles used on the job | A commercial auto policy; personal auto policies exclude business use beyond commuting |
| Umbrella / excess, $1M to $5M | Extra limit over GL, auto and employer's liability | A commercial umbrella that "follows form" over the underlying policies |
Why New York is stricter
Two laws shape every line of that sheet. Labor Law §240, the Scaffold Law, makes owners and contractors strictly liable for elevation-related injuries, with almost no comparative-fault defence. Labor Law §241 adds similar duties for construction, demolition and excavation. When your worker falls, the owner and GC are the defendants, and their carriers turn to your policy to recover. That "action over" is what your general liability policy has to cover, and it's the single most common reason a subcontractor's certificate is rejected.
The third law is the Construction Industry Fair Play Act. Since 2010, anyone performing construction services for a contractor is presumed to be that contractor's employee for workers' comp, disability and Paid Family Leave unless a three-part test is met: free from control and direction, work outside the hiring company's usual business, and customarily engaged in an independent business. A carpenter working for a framing contractor fails the second part by definition. That is why GCs are careful about workers' comp proof for every sub, and why "I pay him as a 1099" doesn't end the conversation.
The three usual reasons
- Workers' comp shown on the ACORD certificate instead of on form C-105.2. The Workers' Compensation Board requires the specific form, and GCs know it.
- Additional insured for ongoing operations only, with no completed operations endorsement.
- An employee-injury or action-over exclusion buried in the GL policy. The GC's insurance reviewer reads the endorsement list; the price you were quoted was low because of it.
What it costs, and how to price the job
New York contractor general liability is priced on payroll and receipts by class of work, and policies that cover Labor Law claims cost materially more than the ones that exclude them. Roofing, framing and anything above two storeys are the expensive end; interior finish, tile and painting are cheaper. Workers' comp is priced per $100 of payroll by classification, with New York's rates among the highest in the country for roofing and carpentry. The first-employee guide covers the workers' comp side in detail.
Get the GC's requirements sheet before you price the job, send it to me, and I'll quote what it takes to comply. Then the insurance is a line in your bid rather than a surprise after you've signed.
The subcontract itself
The insurance sheet usually comes with an indemnification clause: you agree to defend and hold the GC and owner harmless for claims arising from your work. New York General Obligations Law limits how far that can go (a contractor can't be indemnified for its own negligence), but the clause still means your policy is the first one paying. Read it, and tell me if it asks for anything beyond the standard list, like pollution coverage, professional liability for design-build work, or higher umbrella limits. Those can be added, but not the day before mobilisation.
Order of operations
- Get the GC's insurance requirements and the subcontract's insurance and indemnity clauses.
- Tell me what work you'll do on this site, your payroll by role, and whether you'll bring helpers.
- Bind general liability, workers' comp with DBL/PFL, commercial auto and umbrella as required, all effective before your first day on site.
- I issue the certificate with the endorsements attached, plus C-105.2 and DB-120.1, to the GC's certificate email.
- Keep the policies in force for the full job plus the completed-operations period; a lapse voids the additional insured protection and the GC will hear about it from their carrier.
Request a contractor quote, or start with the contractor insurance page.
Common questions
Short answers to what people ask before they call.
What is a certificate of insurance, and can I just send my policy?
A certificate of insurance (the ACORD 25 form) is a one-page summary the broker issues showing your carriers, policy numbers, limits and dates, with the GC listed as certificate holder. GCs want the certificate, not the policy, and they'll want the endorsements attached that prove additional insured status. I issue certificates the same day once the policy is in force.
What does 'additional insured, ongoing and completed operations' mean?
It means the GC and the property owner are covered under your general liability policy for claims arising from your work, both while you're on site (ongoing operations, endorsement CG 20 10 or equivalent) and after you've finished (completed operations, CG 20 37 or equivalent). Cheaper policies include only ongoing operations or offer additional insured status only by written contract with limits. The GC's sheet usually specifies both endorsements by number.
I have no employees. Do I still need workers' comp?
New York doesn't require it for a sole proprietor with no employees, and the Workers' Compensation Board issues a CE-200 exemption certificate you can give the GC. Most GCs will accept it, but some insist on a real policy because the Construction Industry Fair Play Act presumes anyone working on their site is an employee of somebody. If you hire a helper for even a day, the exemption is void and you need a policy that day.
Why did the GC reject my policy for a 'Labor Law exclusion'?
New York Labor Law sections 240 and 241 hold owners and contractors strictly liable for gravity-related injuries on a site, and when a subcontractor's worker is hurt, the owner and GC sue the subcontractor to recover (an 'action over'). Many low-cost contractor policies exclude injuries to employees of any insured or any 'action over' claims, which leaves the GC unprotected. Their requirements sheet will say the policy must not contain a Labor Law, action-over or employee-injury exclusion. Policies without those exclusions cost more; that is the New York contractor insurance market.
What limits will they ask for?
Commonly $1 million per occurrence and $2 million aggregate on general liability, $1 million on commercial auto, $1 million each for employer's liability under workers' comp, and often a $1 million to $5 million umbrella depending on the size of the project. Larger GCs and public work may require more. Ask for the sheet before you quote the job so the insurance cost is in your price.
Let's talk it through
A phone call or a message is all it takes. The first conversation is just a conversation.