What is general liability commercial insurance? It is a policy that protects businesses against third-party claims for bodily injury, property damage, and personal injury arising from their operations. For general contractors, commercial general liability (CGL) insurance is the foundation of every subcontractor compliance program. Without verified CGL coverage on every sub, you operate one accident away from absorbing a six-figure claim.

This checklist gives you a step-by-step verification framework for reviewing CGL policies. Print it, share it with your project managers, and use it every time a sub submits a certificate of insurance.

Part 1: ACORD 25 Certificate Verification Checklist

The ACORD 25 is the standard form for proving CGL coverage exists. Every box on this form tells you something about the sub's protection level.

Section-by-Section Verification

Certificate holder information.

Your company name is spelled correctly
Your company address is accurate
Project name or number is listed in Description of Operations

Producer (broker) information.

Broker name and contact information are listed
Broker is licensed in the state where work is performed

Insured information.

Named insured matches the entity name on your subcontract
Business type (LLC, Corp, Partnership) matches contract
Address matches what you have on file

Commercial General Liability section.

Description of Operations box.

Your company is named as additional insured
Project name or address is referenced
Primary and non-contributory language is stated
Waiver of subrogation language is stated
No restrictive language limiting coverage to specific operations

Part 2: Minimum Limits by Project Size

Insurance requirements should scale with project risk. Use this table as a baseline, adjusting upward for high-risk trades.

Project Value	CGL Per Occurrence	CGL Aggregate	Products-Completed Ops	Umbrella/Excess
Under $1M	$1,000,000	$2,000,000	$2,000,000	Not required
$1M - $5M	$1,000,000	$2,000,000	$2,000,000	$1,000,000
$5M - $25M	$1,000,000	$2,000,000	$2,000,000	$2,000,000 - $5,000,000
$25M - $100M	$2,000,000	$4,000,000	$4,000,000	$5,000,000 - $10,000,000
Over $100M	$2,000,000	$4,000,000	$4,000,000	$10,000,000+

Trade-specific adjustments. High-risk trades warrant higher limits regardless of project size.

Demolition: add $2M to umbrella minimum
Structural steel erection: add $2M to umbrella minimum
Roofing: add $1M to umbrella minimum
Excavation and foundation: add $1M to umbrella minimum
Mechanical/HVAC: standard limits typically sufficient
Electrical: standard limits typically sufficient
Finish trades (paint, flooring, trim): standard limits typically sufficient

Part 3: Required Endorsements Checklist

Endorsements modify the base CGL policy. Without the right endorsements, a sub's coverage may not protect you at all.

Must-Have Endorsements

Additional insured for ongoing operations.

CG 20 10 or equivalent is attached
Edition date is 2004 or earlier (broader coverage) or acceptable alternative
Coverage trigger is "arising out of" the sub's work, not limited to "caused by"

Additional insured for completed operations.

CG 20 37 or equivalent is attached
No time limitation shorter than your state's statute of repose
Coverage extends to the GC for claims arising after work completion

Primary and non-contributory.

CG 20 01 or equivalent is attached
Language states the sub's policy is primary and your policy is non-contributory
No conditions that must be met before primary status applies

Waiver of subrogation.

CG 24 04 or equivalent is attached
Waiver applies in favor of the certificate holder (you)
No conditions or limitations on the waiver

Nice-to-Have Endorsements

Per-project aggregate (CG 25 03). Dedicates the full aggregate to your project instead of sharing it across all the sub's projects. Particularly valuable for large or long-duration projects.

Designated construction project general aggregate limit. Similar to per-project aggregate but specific to a named project. Ask for this on projects over $10M.

Contractual liability preservation. Ensures the sub's CGL covers liabilities assumed under the subcontract's indemnification clause.

Part 4: Exclusions to Reject

Exclusions remove coverage for specific types of claims. Some exclusions are standard and acceptable. Others gut the policy for construction work.

Unacceptable Exclusions for Construction Subs

Exterior work above a specified height. Reject if the sub works above that height on your project.
XCU (explosion, collapse, underground). Reject for excavation, foundation, demolition, and blasting subs.
Residential construction exclusion. Reject if any project component includes residential units.
Subsidence exclusion. Reject for excavation and grading contractors.
EIFS/synthetic stucco exclusion. Reject if the sub installs exterior cladding systems.
Cross-liability/separation of insureds exclusion. Reject always. This exclusion prevents the policy from treating each insured as a separate entity.
Total pollution exclusion (absolute). Reject for mechanical, plumbing, and any sub handling chemicals or fuels on site.
Fungi/mold exclusion. Evaluate based on project type. May be acceptable for steel erection but not for interior finish work.

Acceptable Standard Exclusions

These appear on almost every CGL policy and do not need to be negotiated:

Workers' compensation exclusion (covered by WC policy)
Auto exclusion (covered by commercial auto)
Aircraft/watercraft exclusion (not relevant for most construction)
War/terrorism exclusion
Nuclear hazard exclusion

Part 5: Annual and Mid-Project Compliance Tasks

CGL verification is not a one-time event. Coverage changes throughout a project.

At contract signing:

Collect ACORD 25 certificate
Verify all items in Parts 1-4 above
Request endorsement copies (not just certificate references)
Set calendar alerts for policy expiration

30 days before policy expiration:

Send renewal reminder to sub
Request updated certificate with new policy dates
Reverify all limits, endorsements, and exclusions on renewed policy

Mid-project (quarterly on long projects):

Request current loss runs to check aggregate erosion
Verify no mid-term policy changes or cancellations
Confirm carrier remains rated A- VII or better by AM Best

At project completion:

Verify products-completed operations remains active
Confirm the sub's CGL will not expire before the statute of repose
Request written confirmation from the sub's broker on tail coverage

At final payment/retainage release:

Final certificate verification before releasing retainage
Confirm all endorsements remain in force
Archive certificates and endorsements for the statute of repose period

Why Automated Compliance Beats Manual Checklists

This checklist works. But running it manually across 30 to 60 subs per project takes significant time. A 2024 Dodge Construction Network survey found that GCs spend an average of 14 hours per month managing subcontractor insurance compliance manually.

We built SubcontractorAudit to run this entire checklist automatically. The platform extracts data from ACORD 25 forms using AI, compares limits against your project requirements, flags missing endorsements, detects restrictive exclusions, and sends automated reminders 30 days before expiration. One dashboard replaces this entire paper checklist.

Frequently Asked Questions

What is general liability commercial insurance versus a BOP? A BOP (business owner's policy) bundles general liability with commercial property insurance into a single policy at a reduced premium. BOPs work for small, low-risk businesses. Construction subcontractors typically need standalone CGL policies because BOPs carry lower limits ($1M or less) and exclude many construction-specific exposures.

How is commercial general liability different from professional liability? CGL covers bodily injury and property damage from physical operations. Professional liability covers financial loss from errors in professional services (design, engineering, consulting). A design-build sub needs both policies. A trade sub performing physical work only needs CGL.

Can a sub carry CGL from a non-admitted (surplus lines) carrier? Yes, but non-admitted carriers do not participate in state guaranty funds. If the carrier goes insolvent, claims may go unpaid. Require AM Best ratings of A- VII or better and verify the carrier is admitted in your state when possible.

Does general liability commercial insurance cover employee injuries? No. CGL excludes injuries to the insured's own employees. Workers' compensation insurance covers employee injuries. The GC should require both CGL and workers' compensation from every sub.

What is the difference between a general aggregate and a per-project aggregate? The general aggregate is the total amount the policy pays across all projects and claims in a policy period. A per-project aggregate dedicates the full aggregate amount to a single project. On a $2M aggregate policy without per-project endorsement, all the sub's projects share that $2M. With a per-project endorsement, your project gets its own $2M aggregate.

How do I verify that a sub's CGL has not been canceled? The ACORD 25 includes a cancellation notice provision, but it only requires the insurer to "endeavor to" notify certificate holders. This language is not a guarantee. For verified status, contact the carrier directly, request proof of current standing, or use an automated compliance platform that monitors policy status in real time.