You've hired a contractor to remodel your kitchen. The crew arrives Monday morning, and you're excited to finally get started. But here's the question most homeowners never ask until it's too late: does every person working in your home have proper insurance coverage? If someone gets hurt or causes damage, who pays?
When you hire a general contractor for a home remodeling project, you're not just working with one company. That contractor will likely bring in subcontractors—electricians, plumbers, tile specialists, painters. Each one presents a potential liability if they're not properly insured. Understanding subcontractor insurance requirements isn't just smart business practice for contractors. As a homeowner, it's your financial protection.
Why Subcontractor Insurance Matters to You
Here's the uncomfortable truth: even though you hired the general contractor, you can still be held liable for accidents or damage caused by their subcontractors. If a subcontractor's employee falls off a ladder in your home and doesn't have workers' compensation coverage, guess who might be responsible for their medical bills? In many states, that could be you.
General contractors understand this risk, which is why they almost always require subcontractors to carry insurance even when state law doesn't mandate it. But as the property owner, you need to verify these protections are in place. The general contractor is legally liable for injuries to subcontractor employees if the sub doesn't maintain proper workers' comp coverage. That liability can flow to you as the homeowner if proper insurance verification isn't completed.
The Four Essential Insurance Documents You Need
Before a single hammer swings, you should have four critical insurance documents in hand. These aren't optional feel-good paperwork. They're your financial firewall.
Certificate of Insurance (COI)
A Certificate of Insurance is your proof that the contractor and their subcontractors actually have insurance coverage. It summarizes the key details of their policy—coverage types, limits, effective dates, and the insurance company backing them. Most general contractors won't hire subcontractors without a current COI, but you should verify this for yourself. Request COIs from your general contractor for themselves and every subcontractor who will work on your property. Make sure the effective dates cover your entire project timeline. Average general liability coverage for renovation businesses runs about $87 per month or $1,039 annually, so this is a standard business expense, not an unreasonable ask.
Additional Insured Endorsement
Here's where many homeowners get confused—and where gaps in protection appear. A Certificate of Insurance does not make you an additional insured. Read that again. The COI just proves coverage exists. To actually be protected under the contractor's policy, you need to be named as an additional insured through an actual endorsement issued by the insurance company.
When you're listed as an additional insured on the general contractor's liability policy, their insurance extends certain coverage to you. If the contractor or their subcontractors cause property damage or someone gets injured due to their work, you have protection under their policy in addition to your own homeowners insurance. Your contract should explicitly require the general contractor to add you as an additional named insured on their liability policy for the duration of the job. Don't accept just a certificate—demand to see the actual endorsement.
Waiver of Subrogation
This one sounds technical but it's actually pretty straightforward. Subrogation is when an insurance company pays out a claim, then turns around and sues the party they believe was responsible for the damage to recover their costs. A waiver of subrogation prevents that lawsuit from happening.
In construction contracts, waivers of subrogation are standard practice. They protect all parties involved from getting sued by each other's insurance companies. The contractor's insurance policy should include a waiver of subrogation naming you as the beneficiary. This means if the contractor's insurance pays for damage during the remodel, their insurance company can't come after you to recover those costs. Waiver endorsements typically cost contractors about 15% more on their premiums, but they're a normal part of doing business and keep projects moving forward without legal battles.
Workers' Compensation Verification
This is non-negotiable. Every subcontractor with employees must carry workers' compensation insurance in most states. If they don't, you're exposed. Workers' comp covers medical expenses and lost wages if someone gets injured on the job. Without it, that financial responsibility could land on you.
Your general contractor should obtain a certificate of workers' compensation insurance from every subcontractor before they start work and verify it remains active throughout the project. Even if a subcontractor is a sole proprietor without employees, it's worth requesting proof of coverage or a signed waiver acknowledging they don't carry it. Some states like Florida mandate that contractors verify subcontractor workers' comp coverage, and if you can't produce these documents during an insurance audit, your contractor's premium gets recalculated to include those workers in their payroll—a cost that might get passed to you.
How to Track and Verify Coverage Throughout Your Project
Getting the right documents before your project starts is step one. Keeping track of them throughout the project is step two—and equally important. Insurance policies expire. Coverage gets canceled. Subcontractors rotate on and off your job.
Create a project file that includes copies of all insurance certificates and endorsements. Mark the expiration dates on your calendar. If your remodeling project extends beyond the coverage period shown on any certificate, request updated documentation. Most certificates require two weeks' notice before cancellation, but don't rely on getting that notice—proactively verify coverage remains active.
If a new subcontractor shows up on site—someone the general contractor brings in mid-project—stop work until you've verified their insurance credentials. This might feel awkward, but it's your house and your liability. A reputable contractor will understand and provide documentation without pushback. If they resist, that's a red flag.
State-Specific Requirements You Should Know
While the insurance principles above apply nationally, some states have specific requirements that add extra layers of protection—or complexity.
In New Jersey, regulations changed in 2025 requiring all subcontractors to register independently with the state. Every sub on a job site must now carry their own general liability insurance and financial security bond. Current home improvement contractor registrations expire March 31, 2025, so if you're planning a remodel in New Jersey, verify your contractors have updated their credentials.
California, New York, and Florida all have strict workers' compensation verification requirements, with penalties for contractors who fail to maintain proper coverage. Minnesota updated their independent contractor definitions for construction workers, with new requirements taking effect for services performed through February 28, 2025. Your contractor should be aware of these state-specific rules, but it doesn't hurt to verify with your state licensing board or a local insurance professional familiar with construction requirements in your area.
What to Include in Your Remodeling Contract
Your written contract with the general contractor should explicitly address insurance requirements. Don't leave this to verbal agreements or assumptions. Include specific language requiring the contractor to maintain general liability and workers' compensation insurance throughout the project, with minimum coverage limits clearly stated. Require the contractor to name you as an additional insured on their general liability policy and provide the endorsement before work begins. Include a waiver of subrogation clause protecting you from insurance company lawsuits.
Specify that the contractor must verify all subcontractors carry their own insurance and provide you with certificates of insurance for each sub before that trade begins work on your property. Require the contractor to notify you immediately if any insurance coverage is canceled or lapses, and give yourself the right to halt work until proper coverage is reinstated. Finally, require certificates to show at least two weeks' notice before cancellation, and include provisions for what happens if coverage lapses mid-project.
Protecting Yourself and Your Investment
A home remodeling project is a significant investment, often tens of thousands of dollars. The last thing you want is to compound that expense with liability claims because someone working in your home wasn't properly insured. The good news is that protecting yourself doesn't require insurance expertise—just diligence.
Require proper documentation upfront. Verify it throughout the project. Include clear insurance requirements in your contract. These simple steps create layers of protection that shield you from financial disaster if something goes wrong. Most professional contractors will have all these protections in place already. If a contractor balks at providing certificates, endorsements, or waivers, that's your signal to find someone else. The right contractor understands that proper insurance isn't red tape—it's what separates professionals from fly-by-night operators who disappear when problems arise.
Your dream kitchen or renovated bathroom isn't worth the risk of a lawsuit or uninsured claim. Protect your project by demanding the right insurance credentials before work begins, and sleep better knowing you've built proper safeguards into your remodeling plan.
