Insuring Subcontractors for a Cleaning Company

Direct answer: Require subcontractors to carry their own Commercial General Liability (CGL), state-required workers’ compensation (if they have employees or state law requires it), and commercial auto (if they drive for work). Ask for an ACORD certificate plus the actual additional-insured and waiver endorsements, verify the policy with the insurer or state department of insurance, and make compliance a condition of work and payment. This article covers what to require, why each item matters, contract language, how to verify a COI, typical insurance limits in RFPs, and a checklist and agent questions to use when you hire subs.

Key takeaways

• Require subcontractors to show a current COI and the actual endorsement(s) that add you as additional insured; a COI alone is informational, not proof of enforceable coverage. (caselaw.findlaw.com)
• Minimum coverages to ask for: Commercial General Liability, Workers’ Compensation (per state rules), Commercial Auto/hired & non-owned if they drive, and a surety/janitorial bond where theft or client property exposure exists. (sba.gov)
• Ask for specific endorsements (additional insured, primary & noncontributory, waiver of subrogation) and verify by calling the insurer or checking your state DOI — don’t accept a self-produced PDF alone. (content.naic.org)
• Typical contract limits used by government and many clients are $1,000,000 per occurrence for GL and $1,000,000 auto CSL; RFPs often require higher umbrella/aggregate limits. (legacy.sba.gov)

What insurance should subcontractors carry for a cleaning company?

Short answer: Commercial General Liability (CGL), Workers’ Compensation where required, Commercial Auto or Hired & Non-Owned Auto (HNOA) if vehicles are used, and — depending on client contracts — a janitorial bond and umbrella/excess liability. What each does (brief):

• CGL — pays third‑party bodily injury, property damage, and some defense costs from cleaning operations.
• Workers’ Compensation — covers employee injuries and often shields you from being named on claims tied to a sub’s employee. State requirements vary. (irs.gov)
• Commercial Auto / HNOA — covers liability from vehicles used while working. A client or your company should never rely on personal auto policies for business-driving risks. (iii.org)
• Janitorial bond — protects clients against theft or employee dishonesty; it’s different from GL. See Janitorial Bond vs General Liability for Cleaners.
• Umbrella/excess — provides higher limits that kick in if primary limits are exhausted; frequently required on larger contracts. Use this short-table for comparison. | Coverage | What it pays | Who needs it (cleaning subs) | Typical trigger | |---|---:|---|---| | Commercial General Liability (CGL) | Third‑party BI, PD, defense | Every subcontractor doing on‑site cleaning | Client sues after a slip, damaged property | | Workers’ Compensation | Employee medical, lost wages | Subs with employees or where state requires | Sub’s employee injured on job | | Commercial Auto / HNOA | Auto BI/PD (and damage to third party) | Subs who drive for work or use client vehicles | Accident while traveling between jobs | | Janitorial Bond | Theft or dishonesty by worker | High‑value client sites (retail, medical, corporate) | Missing property discovered after service | | Umbrella/Excess | Extra liability limits above primaries | For larger contracts or higher exposures | Large jury award or multiple claimants | For more on janitorial bonds and when to require one, see Janitorial Bond vs General Liability for Cleaners.

What coverage and limits should you require in contracts?

Start from the contract’s risk allocation and the client’s demands. For many commercial clients and public RFPs, common minimums are:

• Commercial General Liability: $1,000,000 per occurrence / $2,000,000 aggregate (some require $1M/$3M or $2M/$4M).
• Business Auto Liability (or Commercial Auto CSL): $1,000,000 recommended; $500,000 is sometimes the minimum but can be insufficient for multi‑vehicle injuries.
• Workers’ Compensation: statutory limits per state; employers’ liability often requested at $500,000–$1,000,000.
• Umbrella/Excess: often $1M–$5M above primary limits on larger accounts. Why endorsements matter: a COI’s boxes are informational — the policy terms and endorsements determine whether you’re actually covered. Courts have found that a certificate alone doesn’t create coverage if the underlying policy or endorsement doesn’t match the certificate. Require the specific endorsement form (e.g., CG 20 10 or CG 20 37 type language) that adds you as an additional insured. Practical contract language (short checklist):
• “Subcontractor shall maintain CGL of not less than $1,000,000 per occurrence and name Contractor and Client as Additional Insured by endorsement.”
• “Subcontractor’s insurance shall be primary and noncontributory to any other available insurance for claims arising out of Subcontractor’s operations.”
• “Subcontractor shall obtain and provide an insurer-issued waiver of subrogation on Workers’ Compensation in favor of Contractor and Client, where permitted by law.”
• “Subcontractor shall not commence work until Contractor receives the COI and copies of the Additional Insured endorsement(s).”
• “Failure to maintain required insurance is a material breach and a condition precedent to payment.” Use an insurance-minded attorney to insert precise endorsement names if the client is risk-averse; endorsement names and policy language matter in disputes. (iii.org)

How do you verify a subcontractor’s certificate of insurance (COI) — and avoid fakes?

Don’t accept a PDF alone. A certificate is a summary and “confers no rights” under most ACORD forms; it can be altered. Courts have rejected reliance on a COI alone if the policy or endorsement didn’t actually provide coverage. Verification steps that work:

1. Require the COI be issued by the sub’s broker/producer and sent directly to you from the broker’s email (not from a subcontractor’s personal email). Ask for the agency contact name and phone.
2. Ask for and receive the actual endorsement(s) — the additional insured endorsement and any waiver of subrogation form — not just the certificate. If an endorsement references a policy number, compare it to the COI.
3. Independently call the insurer (use the insurer’s public phone number or your agent’s contact) and give the policy number and named insured to confirm the policy is active and the endorsement is in force. Do not rely on the phone number printed on the COI unless you verify it independently.
4. Check the insurer is licensed in your state via your state department of insurance or NAIC consumer page when in doubt.
5. Keep renewals and a tracking system so you’re alerted before a policy lapses — require at least 30 days’ notice of cancellation where possible. Many contracts and RFPs explicitly require 30‑ or 60‑day notice. If you need a reliable operational rule: require broker-sent COIs plus the endorsements and make payment contingent on receipt. If a sub balks or provides only altered documents, don’t allow them on-site until verification is complete.

When do you need a subcontractor’s workers’ comp vs. covering them yourself?

Workers’ compensation is a state law issue: if the subcontractor employs workers, most states require that employer to carry WC and to provide proof. Treat the sub as the responsible employer unless facts or state law say otherwise. The IRS common‑law factors also matter when determining if someone is an employee or independent contractor (control, financial arrangement, relationship). Misclassification can produce tax and WC exposure. Practical points:

• If you hire a solo cleaner who truly operates as an independent contractor with their own business and insurance, have them show WC or a written state exemption if they have no employees. Where state law requires coverage regardless of payroll, require policy proof.
• If you directly supervise, control schedules, supplies, and methods, or regularly hire the same people, you raise the risk the worker will be treated as your employee — and your WC policy may be exposed. Consider payrolling workers instead of misclassifying subs.
• Indemnity/clawback: include contract language making the subcontractor responsible for claims arising from its people, and require proof of WC. Some states give statutory protections to a hiring entity that collects acceptable COIs; others do not — check your state DOI or counsel. If you need a deep dive on residential cleaner workers’ comp rules, see Do Residential Cleaners Need Workers Compensation? Guide.

What if a subcontractor has no insurance — can you still use them?

Short answer: legally you can in many places, but it’s risky. If a subcontractor lacks required insurance you may be exposed to lawsuits and uninsured claims, and many client contracts prohibit it. Options if a sub lacks coverage:

• Require the subcontractor to buy a policy before starting work and provide proof.
• Require the sub to sign a strong indemnity agreement and carry at least a minimal CGL, but note indemnity is only as good as the subcontractor’s ability to pay. Courts may enforce indemnity differently state‑to‑state. (caselaw.findlaw.com)
• Buy specific coverage for the job (some contractors purchase wrap policies), but this is usually more expensive and administratively complex.
• Decline the sub and hire an insured vendor — the safest option is to require insurance as a precondition of work. Remember: some clients (office buildings, hospitals, universities) will insist on insured subcontractors and additional insured endorsements. Your contract language should make insurance compliance a condition precedent to payment.

How much will subcontractor insurance cost (what to expect)?

Costs vary by state, number of employees, loss history, tasks performed, and limits. Consumer price studies put small‑business general liability premiums in wide ranges depending on industry risk:

• MoneyGeek’s analysis (as of October 2026) models industry-by-industry small-business premiums and shows broad variation by risk class. For many low‑risk solo operators GL can be under $100/month; higher‑risk trades run several hundred dollars per month. (moneygeek.com)
• NerdWallet reports that basic $1M general liability policies can start as low as about $50/month for low‑risk businesses, while trade/riskier sectors pay more. Use these public benchmarks when budgeting, but expect cleaning subcontractors who transport equipment, enter many client sites, or handle valuables to pay more. (nerdwallet.com) You should avoid budgeting by guesswork: ask a broker for quotes using the sub’s payroll, vehicle schedule, job duties, and desired limits. If you require endorsements (additional insured, primary/noncontributory, waiver of subrogation) those endorsements may raise the premium slightly. For a full cost breakdown for cleaning businesses, see How Much Does Cleaning Business Insurance Cost? US Guide.

Common mistakes that get companies sued or denied coverage

• Accepting a COI PDF without endorsements or independent verification. Courts sometimes find zero coverage when an altered or incomplete COI is relied on.
• Requiring an “additional insured” box checked on a COI but not obtaining the actual endorsement language — the protection you need might not exist.
• Misclassifying workers as independent contractors to avoid payroll taxes and WC — the IRS factors favor substance over labels.
• Using subcontractors with no auto coverage while they drive client vehicles — personal policies often exclude business use and won’t defend commercial claims.

How to buy or compare subcontractor insurance (practical checklist)

1. Write required coverages, limits and endorsements into the subcontract and client MSA.
2. Require broker-sent COI plus endorsement PDFs before work starts.
3. Verify the policy with the insurer or the state DOI and log verification.
4. Keep renewal reminders and re‑verify 30 days before each expiration.
5. For high-exposure sites (medical, retail, hospitality), require a janitorial bond and a higher umbrella.
6. Make compliance a payment condition and withhold payment until documents are verified. If your cleaning company sometimes functions like a general contractor or manages multiple subs, consider a formal prequalification form that collects W-9, state contractor license, COI, endorsements, and references (standard in construction and property management).

Questions to ask your agent (use these when screening subcontractor programs)

• If I require an Additional Insured endorsement naming my company, which endorsement form will the carrier use? (Request form numbers or a copy.)
• Will the additional insured wording be “primary and noncontributory”? If not, what language will apply? (caselaw.findlaw.com)
• Can you verify a subcontractor’s policy by policy number if I call you — and will you confirm endorsements?
• For my cleaning subs, what are realistic GL/auto/WC limits for competitive premiums in my state? (Ask for samples.)
• If I require a waiver of subrogation on Workers’ Comp, is that endorsement available in my state and will it raise premiums?

Frequently asked questions

Bottom line

Protect your cleaning company by making insurance compliance nonnegotiable: require the right lines (CGL, WC, auto), ask for broker-sent COIs plus the actual endorsements (additional insured, waiver of subrogation, primary/noncontributory), independently verify policies with the insurer or state DOI, and tie compliance to payment. Use the checklist and agent questions above when onboarding subcontractors. Internal next steps (concrete):

• Add insurance requirements and endorsement names to your standard subcontract form today.
• Require broker-sent COIs and the actual endorsements before the first invoice is paid.
• Have your agent draft sample language for the additional insured and waiver of subrogation endorsements. For more on workers’ comp specifics and whether your residential cleaners need coverage, see Do Residential Cleaners Need Workers Compensation? Guide. For bonding and theft exposures, read Janitorial Bond vs General Liability for Cleaners. To model cost and budget for subcontractor insurance, see How Much Does Cleaning Business Insurance Cost? US Guide. For a consultant’s approach to insuring subs (useful templates), see How to Insure Subcontractors as a Consultant (U.S.). If you need precise state rules or a template endorsement, contact your insurance agent and your state department of insurance and keep copies of every endorsement in a central file.