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Almost all construction contracts require that contractors and subcontractors carry Commercial General Liability ("CGL") insurance. Never sign over the insurance check; do not pay with cash, or pay the total charges before the work is complete.Clients may require that you show proof of general liability insurance before agreeing to work with your business. Contractor's Insurance. 15. Contractors' general liability insurance will cover risks regarding bodily injuries or property damage. A licensed contractor must be insured and may also be bonded. This means that they are required to have liability insurance. Does the insured sign a written contract when working as a subcontractor? This includes a subcontractor or specialty contractor but not a material supplier.