Usually no. If your policy already has blanket wording, adding your general contractor (GC) as an additional insured costs nothing extra. ("Additional insured" means the GC can use your liability policy if they get sued because of your work.) If the insurance company has to add them by name, expect roughly $50 to $300 per GC (illustrative). The one piece that sometimes carries a real charge is coverage that continues after the job is finished, and even that is usually modest for most trades. Who this is for: subcontractors who want to know what to build into a bid before they say yes to a GC's insurance requirements.
The short version
- If your policy has blanket wording, adding a GC costs nothing. The certificate is free too.
- Adding a page that names one GC runs roughly $50 to $300 (illustrative).
- Coverage after the job is finished is the piece most likely to add premium, depending on your trade.
- The GC shares your limits, so the hidden cost is less coverage left for you on a big claim.
- The most expensive outcome is skipping it. A rejected certificate can idle a crew for days.
Why is it sometimes free and sometimes not?
It comes down to how your policy adds customers. Blanket wording is one endorsement that covers any customer you agree in a written contract to name. The insurance company priced it in up front, so each new GC costs nothing. Scheduled wording adds customers one name at a time. Each name is a new endorsement, and many insurance companies charge a small fee to process it.
Many contractor policies written today include blanket wording, at least for the time you are on the job. Many older policies and some low cost online policies do not. See blanket vs scheduled additional insured.
What does each option cost?
These figures are illustrative. Your price depends on your trade, payroll, state, and insurance company.
| What you need | Illustrative cost | Notes |
|---|---|---|
| Blanket wording already on your policy | $0 per GC | Nothing to add. |
| Adding blanket wording to a policy that lacks it | $0 to a few hundred dollars a year | One time fix that covers every future GC. |
| One named GC, during the job | Roughly $50 to $300 | Some charge nothing, others a flat fee per endorsement. |
| Coverage after the job is finished | $0 to a modest extra premium | Depends on trade. Roofing and waterproofing cost more than painting. |
| Primary and noncontributory wording | Usually $0 | Your policy pays first and the GC's does not chip in. Often built into the same endorsement. |
Why does coverage after the job cost more?
Many of the biggest construction claims, especially property damage like leaks and failed work, show up after the job is done. A roof leaks two winters later. When your GC is covered for those claims through your policy, the insurance company is taking on more risk for longer, so some charge for it. The charge is usually small next to the premium you already pay, and it is the first thing the person who checks subcontractor insurance paperwork for the GC (their compliance desk) looks for. Skipping it to save a little is the most common way we see contractors lose money. Deeper reading: what completed operations means.
What is the hidden cost nobody mentions?
Your GC does not get their own limits. They share yours. If a claim pays $600,000 of your $1,000,000 per occurrence limit (the most the policy pays for one incident) for the GC, you have $400,000 left for yourself on that incident. On most standard policies the lawyers' bills are paid on top of that limit. On some specialty policies they come out of it, which makes the squeeze worse, so ask your broker which kind you have.
How do I keep the cost down?
- Get blanket wording at renewal. It is cheapest to add when the policy is written, and it ends per job fees for good.
- Ask for both pieces at once. During the job and after. One request, one fee instead of two.
- Send the contract, not a guess. If your broker sees the exact wording, they order only what the GC requires.
- Build it into the bid. A few hundred dollars on a $150,000 subcontract is a rounding error. A week of idle crew is not.
Is it ever worth saying no?
Rarely. The cost is low and every GC asks for it. What is worth pushing back on is wording that goes further, such as covering the GC for their own mistakes, or limits far above what your trade carries. Your broker can often get those adjusted. See when requirements exceed your policy.
What this looks like in real life
Illustrative example. It is typical of what we see and is not a promise of how any specific situation would be handled.
The setup: A tile subcontractor in New York bids a $68,000 bathroom package on a 40 unit apartment building. The subcontract requires the GC and owner to be additional insureds during the job and after.
What went wrong: Her policy has scheduled wording only. The insurance company quotes $150 for the ongoing endorsement and $225 for the completed operations piece (illustrative). She almost skips the second one to save money, since "the job will be over." Her broker talks her out of it.
What it cost: Her full fix costs $375 and takes two business days. Compare the plumber on the same job, who skipped the completed operations piece to save $225. Fourteen months later a supply line failed and the GC was sued. The GC billed the plumber roughly $40,000 under the indemnity clause in his subcontract (a promise to cover the GC's losses). Whether his own policy picks that up depends on its wording and state law, and either way it comes out of his own limits after months of arguing.
The fix: Price the whole requirement, not half of it. The part that costs a little more is the part that protects you.
Frequently asked questions
Q: Does adding my GC as an additional insured cost extra?
Often not. If your policy has blanket wording, adding a GC is free. If the insurance company has to add them by name, expect roughly $50 to $300 per endorsement (illustrative), plus sometimes a small premium for coverage after the job.
Q: Why did my broker say it is free but the GC's form says it costs money?
Your broker is probably right about your policy. Blanket wording makes each new GC free. The GC's form is written for every subcontractor, including those with policies that charge per name.
Q: Does the price go up if I name the owner and the lender too?
Not with blanket wording, which covers everyone your contract requires at no extra charge. With scheduled wording, each extra name can be its own endorsement and its own fee.
Q: Is the after the job coverage worth paying for?
Yes for almost every trade. Many of the biggest construction claims show up after the work is done, and it is the first thing the GC's paperwork checker looks for. The premium is small next to what a rejected certificate costs.
Q: Will adding a GC raise my premium at renewal?
Not by itself. Your premium is driven by your trade, payroll, and claims history. Blanket wording may add a small amount a year, but naming individual GCs does not change your base rate.
Q: Does my GC get extra coverage limits when I add them?
No. They share your existing limits. The cost to you is not more premium but less coverage left for yourself if a large claim involves the GC. Many subcontractors carry an umbrella (a second layer of coverage above your liability policy) for that reason.
How Morrow helps
Morrow is a licensed independent commercial insurance brokerage that works with contractors and trades every day. Telling a subcontractor exactly what a general contractor's insurance requirements will cost, before the bid goes in, is one of the most useful things we do.
- Free contract review. Send us the contract or bid documents and we mark up the insurance section in plain English, whether or not you buy anything from us.
- Free, instant certificates. Clients issue their own certificates of insurance online in about a minute, any hour, any day, at no charge.
- Markets you cannot reach online. One application, shopped across many insurance companies for general liability, workers comp, auto, umbrella, and pollution coverage.
One more thing. This article is general information and is not legal advice or a statement of coverage. Your contract and your policy wording control in every case. Requirements vary by customer, by state, and by insurance company, so have a licensed advisor review your own contract and your own policy before relying on any of it.
Last updated: Reviewed by the Morrow commercial lines team. Last updated September 2026.