Insurance for Subcontractors: What the Main Contractor Will Demand

‍‌​‌‌​​​​‌​‌‌​‌‌‌​‌​‌​​‌​‌​‍SiteKiln gives you plain-English information, not personal insurance, financial or legal advice. If you need advice specific to your situation, talk to a qualified insurance broker or solicitor.

6.10.1 The short version

If you are a subcontractor, main contractors expect you to turn up already insured -- they are not your safety net. At a minimum that means public liability, employers' liability if you have staff or labour-only subs, and often contract works and plant if you control part of the build.

On bigger or riskier jobs they will also press for higher limits (for example £5m or £10m PL) and, if you touch design, your own professional indemnity cover. If you cannot produce certificates that match the contract, you simply will not get on site or get paid.

6.10.2 The core covers most main contractors expect

For most construction subcontractors, main contractors look for at least:

• Public liability (PL) -- for injury and third-party property damage you cause.
• Employers' liability (EL) -- if you have employees or labour-only subcontractors under your control (legal requirement in most cases).
• Contract works / CAR -- if you are responsible for a defined part of the works or running your own jobs as a package.
• Plant / tools -- where you bring significant owned or hired-in kit to site.
• Professional indemnity (PI) -- if you carry any design, specification or professional advice obligations on your portion of the work.

On larger frameworks and public-sector work they may also expect you to have legal expenses cover and evidence of a sensible claims history, RAMS and safety accreditations alongside your insurance.

6.10.3 Typical minimum limits used on site

Limits vary by client and risk, but common patterns are:

Public liability:

• Domestic/small commercial: £1m-£2m often accepted.
• Commercial sites, schools, hospitals, local authority work: £5m is now very common; £10m on higher-risk or city-centre sites.

Employers' liability:

• £10m any one occurrence is effectively industry standard in the UK.

Contract works / CAR:

• At least the replacement cost or contract value for the section of works you are responsible for, sometimes worded as "minimum cover required is the replacement costs or value of the individual contract, whichever is higher".

Professional indemnity (where relevant):

• Often £250k-£1m any one claim for smaller design portions, rising to £2m-£5m+ on bigger or higher-risk design packages -- usually set in the subcontract or design appointment.

Many main contractors issue a standard "minimum insurance requirements" sheet with PL, EL and CAR/plant limits by risk band; if your policy sits below those, you are non-compliant from day one.

6.10.4 Contract clauses you will see as a subcontractor

Standard subcontracts (including under JCT and main-contractor own forms) usually include clauses that:

• Require you to maintain PL, EL and sometimes PI and contract works for specified limits and for the duration of the works (and, for PI, for a number of years afterwards).
• Say you must provide evidence of cover (certificates and schedules) before starting and on renewal.
• Allow the main contractor to withhold payment or remove you from site if you cannot prove cover or if your policy lapses.
• Sometimes require "parity" -- your cover must be on no worse terms than theirs for the activities you undertake.

On jobs let under JCT/NEC, the main contract's insurance structure (who insures the works, in whose names) sits alongside your subcontract requirements -- you may still need your own contract works cover for your materials and work if it is not all picked up under a project policy.

6.10.5 Quick subcontractor insurance health check

Before you sign a subcontract or turn up on a new site, you are in a much safer position if you can honestly say:

Your PL limit matches or beats the minimum in the order or site rules (for most commercial sites that means £5m+).

You hold £10m EL if you have any employees or labour-only subs, and your business description on the policy matches what you actually do.

If you are responsible for a chunk of the build, your contract works sum insured is at least the value of your part of the contract (including variations).

If you touch design/specification, you have PI at the level the subcontract demands, and you know how long you must keep it in place after completion.

You can email up-to-date certificates and schedules within a few minutes when the main contractor asks, without digging through old paperwork.

If any of those are a "no", expect site access problems, payment delays, or a quick "thanks but no thanks" from the main contractor's compliance team.

6.10.6 What to do next

• Read the insurance section of your subcontract before you sign -- check PL, EL, CAR and PI limits and durations.
• Make sure your policy limits match or beat the minimum in the order or site rules.
• Have up-to-date certificates and schedules ready to email within minutes when the main contractor asks.
• If you touch design or specification, check whether your subcontract requires PI and for how many years after completion.

6.10.7 Who to contact

• Your insurance broker -- to check your cover matches subcontract requirements (paid)
• FCA Financial Services Register -- fca.org.uk/firms/financial-services-register -- to check your insurer or broker is authorised (free)
• Financial Ombudsman Service -- 0800 023 4567, financial-ombudsman.org.uk -- if you have a complaint about your insurer (free)
• ABI (Association of British Insurers) -- abi.org.uk -- general insurance guidance (free)
• Citizens Advice -- citizensadvice.org.uk -- for general guidance on your rights (free)

6.10.8 Sources and legislation

• Employers' Liability (Compulsory Insurance) Act 1969 -- legal requirement for EL when you have employees. legislation.gov.uk/ukpga/1969/57
• Consumer Insurance (Disclosure and Representations) Act 2012 -- disclosure duties when arranging cover. legislation.gov.uk/ukpga/2012/6
• Third Parties (Rights against Insurers) Act 2010 -- third-party rights against your insurer. legislation.gov.uk/ukpga/2010/10
• Road Traffic Act 1988 -- van and vehicle insurance requirements. legislation.gov.uk/ukpga/1988/52

6.10.9 Related guides on this site

• 6.1 Public liability insurance
• 6.2 Employers' liability insurance
• 6.3 Professional indemnity insurance
• 6.5 Contract works / all risks insurance
• 6.9 Making an insurance claim
• 5.2 CIS registration and verification

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