General Insurance 3 min read • Updated September 2026

Does contractors all risk insurance cover sub-contractors?

IB
Insurance Bhaiya Editorial Team
Updated September 2026 • 3 min read
Quick Answer / Executive Summary

Only if the policy is specifically extended to include them. Many contractors all risk policies exclude losses caused by uninsured sub-contractors' negligence by default, so main contractors need to confirm sub-contractors either hold their own cover or are added to the main CAR policy.

Key Takeaways at a Glance
  • Standard CAR wording often excludes damage caused by an uninsured sub-contractor's negligence.
  • Main contractors can add sub-contractors to the policy or require proof of their own cover before work starts.
  • Contracts should specify minimum liability and contract works cover limits for every sub-contractor engaged.
  • Uninsured sub-contractor exposure is one of the most common causes of disputed claims on multi-trade sites.
  • Collecting certificates of insurance from every sub-contractor before they start on site closes most of this gap.

Why the default position excludes them

Insurers price CAR policies around the risk profile of the named contractor. Extending automatic cover to every sub-contractor, whose safety record and competence the insurer hasn't assessed, would change that risk profile significantly — which is why most policies exclude damage caused by an uninsured sub-contractor's negligence unless the extension is specifically bought.

Two ways to close the gap

The main contractor can either add named or unnamed sub-contractors onto their own contractors all risk policy as an extension, or require every sub-contractor to hold their own public liability and, where relevant, contract works insurance and provide certificates before starting work.
Real-Life Case Incident & Precedent
Precedent: A specific sub-contractor extension on the main CAR policy allowed the claim to proceed despite the sub-contractor holding no cover of their own.

Uninsured sub-contractor causes a flood

Scenario: A plumbing sub-contractor left a pipe unsealed overnight, flooding a newly plastered ground floor on a renovation project. The sub-contractor held no insurance of their own.

Resolution & Judicial Outcome: Because the main contractor's CAR policy had been extended to cover damage caused by sub-contractors, the contract works section paid for the re-plastering and drying-out costs, and the insurer separately pursued recovery from the sub-contractor.

Related Case Study Simulation: Read Analysis

What You Should Do: Step-by-Step Action Plan

1 Ask your insurer whether sub-contractor negligence is included, excluded, or available as an extension.
2 Collect a current certificate of insurance from every sub-contractor before they start on site.
3 Set a minimum liability limit sub-contractors must hold, matching or exceeding your own policy.
4 Keep a simple site register of which sub-contractors are insured directly versus covered under your policy.
5 Review the extension annually as your list of regular sub-contractors changes.

Critical Mistakes to Avoid

  • Assuming verbal confirmation of 'yes we're insured' is enough without seeing the certificate.
  • Letting a sub-contractor's certificate expire mid-project without noticing.
  • Setting sub-contractor liability limits far below your own policy's limit.
  • Forgetting to renew the sub-contractor extension when the main CAR policy renews.

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