Insurance is the first gate on every legitimate subcontract. No serious prime contractor will put your crew on a government site without seeing certificates first — it protects you, the prime, and the agency.
The two policies you need
- General liability (GL): covers property damage and injuries your work causes. The common floor on government facilities work is $1,000,000 per occurrence / $2,000,000 aggregate. For small facilities companies this typically runs a few thousand dollars a year.
- Workers' compensation: covers your own employees if they're hurt on the job. Requirements are set by state law — in Georgia, it's required at three or more employees, but primes typically require it regardless of headcount, because an uncovered injury on a government site lands on everyone.
What "additional insured" means
Primes will ask to be named as an additional insured on your GL policy for the duration of the work. This extends your coverage to the prime for claims arising from your operations. It costs little or nothing — usually a phone call to your agent — and the prime will want a certificate of insurance (COI) showing it before your first day on site.
The certificate of insurance (COI)
A COI is the one-page proof your agent issues, showing coverage types, limits, policy dates, and additional-insured status. Get comfortable requesting these quickly — a sub who can produce a correct COI in 24 hours reads as professional; one who takes two weeks stalls the whole contract.
Practical advice
If you're quoting government subcontract work and don't yet carry these policies, get quotes now, not after you win the work. Coverage can usually bind within days, but a missing COI at contract start is a common and completely avoidable way to lose an award to a backup sub.