For large general contractors (GCs) and their subcontractors, the contract is where project risk is either controlled—or left dangerously exposed. While scope, price, and schedule get plenty of attention, it’s often the insurance clauses that quietly determine how well you’re protected when things go wrong.

Throughout my career, I’ve seen certain clauses surface again and again at the negotiation table. They may look like “standard language,” however, they’re anything BUT standard in their impact. Here’s a look at six of the most heavily debated insurance provisions, why they matter, and how general contractors should approach them.

1. Additional Insured Endorsements

• Why It’s Negotiated: GCs often require broad AI coverage on both ongoing and completed operations, while subcontractors may push back to narrow the scope or limit duration.

• Risk if Overlooked: Without the right endorsement, a GC may be left defending itself without the subcontractor’s insurer stepping in.
• Best Practice: Specify ISO endorsement numbers (e.g., CG 20 10 12 19 + CG 20 37 12 19) and confirm they are attached to the subcontractor’s policy.

2. Indemnity Provisions

• Why It’s Negotiated: State anti-indemnity statutes and varying interpretations make this clause a legal minefield.

• Risk if Overlooked: Overly broad language can be unenforceable, while too narrow a clause can shift liability back to the GC.

• Best Practice: Align indemnity wording with insurance requirements to ensure there’s coverage for the liabilities you’ve agreed to assume under your contract with the Owner.

3. Waiver of Subrogation

• Why It’s Negotiated: Insurers prefer to preserve their right to recover from at-fault parties, while owners and GCs want to prevent finger-pointing and project delays.

• Risk if Overlooked: Without a waiver, an insurer can sue another party on your project, souring relationships and tying up resources.

• Best Practice: Apply waivers to all parties on the project and confirm they are endorsed onto policies, not just referenced in the contract.

4. Primary & Non-Contributory Language

• Why It’s Negotiated: This determines the order in which insurance policies respond.

• Risk if Overlooked: If missing, the GC’s policy could be forced to share or contribute before the subcontractor’s policy is fully tapped.

• Best Practice: Require a primary and non-contributory endorsement—don’t rely on policy interpretation.

5. Completed Operations Coverage Duration

• Why It’s Negotiated: Carriers may only guarantee completed operations coverage for one year, while contracts often require up to ten years to match the statute of repose.

• Risk if Overlooked: If coverage ends early, latent defects may emerge with no insurance to cover them.

• Best Practice: Verify policy language for the full required period before work begins.

6. Umbrella/Excess Insurance Requirements

• Why It’s Negotiated: High limits can be expensive, and subs may argue they’re excessive for their trade.

• Risk if Overlooked: Insufficient limits leave GCs exposed when catastrophic claims exceed a subcontractor’s primary policy.

• Best Practice: Base limits on risk exposure, not just contract size, and require follow-form coverage over all required underlying policies.

Final Thoughts

Contracts are often signed under time pressure, but insurance clauses deserve deliberate attention. These provisions don’t just dictate who pays—they can determine whether a loss is covered at all.

The smartest GCs and subcontractors involve their insurance advisors early in the contract review process. By negotiating these clauses with foresight, you reduce disputes, keep projects moving, and ensure that when the unexpected happens, your insurance responds the way you intended.