Relying on GC insurance might sound like a smart move. After all, if the general contractor already has coverage, why pay for your own? You might even be listed on their policy as an additional insured. Sounds like you’re covered, right?
Not exactly.
The problem is that relying on GC insurance can create a false sense of security. It’s easy to assume you’re protected, only to find out—too late—that the coverage doesn’t extend to your specific work, tools, or liability. If a claim hits and your name isn’t on the check, you could be stuck dealing with damage, delays, or legal costs that weren’t supposed to be yours.
In this post, we’ll break down what GC insurance actually covers, what it doesn’t, and why depending on someone else’s policy might not be enough to protect your business.
If you’re thinking about relying on GC insurance, it’s important to know what that policy actually includes. Most general contractors carry commercial general liability coverage, which protects them from claims involving property damage or bodily injury caused by their work or the work of their subs. Sounds broad—but there’s a catch.
These policies are written with the GC’s interests in mind. That means any coverage you might benefit from is secondary to their own needs. If you're not explicitly named or endorsed on the policy, there's a good chance you’re not covered at all. And even if you are added, that protection only goes so far.
For example, GC insurance usually won’t cover damage to your own tools or equipment. It typically doesn’t include workers' comp for your crew. And if there’s a dispute about who caused the issue, their insurance company may push back on covering you—especially if doing so puts their primary client at greater risk.
Relying on GC insurance also puts you in a position where you have little control over the claims process. You’re depending on their broker, their paperwork, and their timeline—all of which may prioritize their interests over yours.
The bottom line? If you’re relying on GC insurance as your main form of protection, you might be standing on shaky ground. Understanding what’s included (and what’s not) is the first step to protecting yourself.
One of the most common arguments for relying on GC insurance is, “I’m listed as an additional insured.” That sounds like solid backup—but it’s not the full story.
Being named as an additional insured can give you some coverage under the general contractor’s policy, but it usually comes with limitations. The coverage is often restricted to specific jobs, specific dates, and specific claims tied to the GC’s direct operations. If something goes wrong that’s solely tied to your work—or if you’re blamed independently—you could be out of luck.
Another issue is how the endorsement is written. There’s a big difference between a blanket additional insured clause and a job-specific one. If your name isn’t clearly tied to the project or the paperwork isn’t in order, your coverage could be challenged—or denied entirely.
Even when the endorsement is valid, relying on GC insurance puts you behind the scenes. You don’t control the claims process. You don’t choose the defense. And if a settlement is reached that doesn’t cover your losses, you may have no say in the matter.
It’s easy to assume that having your name on someone else’s policy is enough. But when claims get complicated, being an afterthought on a GC’s endorsement doesn’t always protect your bottom line. That’s the hidden risk in relying on GC insurance to cover your business.
Everything feels fine until there’s a claim. That’s where relying on GC insurance can quickly become a headache. The moment damage occurs, someone gets hurt, or a dispute comes up on the jobsite, the real test begins—and it’s not always one you control.
First, there’s the delay. Since the policy isn’t yours, you’re not the priority. The GC’s broker or insurance company is going to protect the general contractor first. That could mean waiting days—or weeks—just to get clarity on whether you’re even covered.
Then come the disputes. If the claim involves shared liability, you might find yourself blamed or partially at fault. And since you’re relying on GC insurance to step in, you could be left on the hook while the two insurance carriers point fingers.
You also won’t be calling the shots on legal defense or settlements. If the GC’s carrier decides to settle in a way that doesn’t fully protect you, you may have little say. That’s the tradeoff when your coverage is tied to someone else’s policy.
When everything goes smoothly, relying on GC insurance might feel like enough. But the minute things get messy, you’ll wish you had your own policy—one written around your business, not someone else’s.
There are plenty of situations where relying on GC insurance just isn’t enough. If you’re working under multiple general contractors throughout the year, it’s risky to depend on someone else’s coverage every time. Each policy will vary, and the limits of protection may not follow you from job to job.
If you’re handling higher-risk tasks like excavation, tree removal, or chemical spraying, you’re also taking on more liability. GC insurance might not cover those activities—or might restrict coverage in ways that leave you exposed.
The same goes for jobs where you’re responsible for your own materials, tools, or crew. If something gets damaged or someone gets injured, your name may not even be part of the claim if the GC’s policy doesn’t specifically extend to those areas. That’s a gap you don’t want to discover after the fact.
And depending on your licensing, some jurisdictions or clients may require you to carry your own liability or workers comp policy regardless of what the GC holds. If you’re relying on GC insurance alone, you could find yourself out of compliance—and off the job.
At the end of the day, relying on GC insurance is convenient… until it’s not. Having your own coverage means you don’t have to wonder if someone else’s policy will actually protect you when it matters. You’re in control—and that changes everything.
Relying on GC insurance might seem like a shortcut—but it can leave you exposed when things get complicated. You don’t control the policy, the process, or the payout. And when a claim hits, being someone else’s afterthought isn’t a position you want to be in. Whether you’re running multiple crews or handling high-risk work like trenching or grading, having your own protection matters. If that sounds like your world, check out Excavation Contractor Insurance to see what coverage built for your business really looks like. Peace of mind starts with a policy that actually has your name on it.