Insurance can be tricky for contractors. Texas is the only state where Workers Comp insurance is not required by law. HOWEVER. If you hire an uninsured sub, then YOU are still could be liable for benefits for your subcontractors if they don’t have a policy in place.
You can’t buy workers comp insurance for just subs, so unless you want to be stuck holding the bag, you will need to require your subs to buy workers comp insurance, AND provide you with proof of coverage. Otherwise, YOU may have to pay lost wages and medical costs.
The same goes for professional liability, auto liability, and general liability – YOU, the general contractor, may be liable, unless your subs are fully insured, naming you “additional insured” on their policies.
Too many businesses avoid paying for benefits and coverage for employees by hiring subs only. So the law has reacted, by holding the general responsible for any uninsured subcontractors. Please be advised. Hiring subcontractors without insurance could be costly
If the money passes through your organization, you DO need liability, workers comp, auto liability, professional liability, and likely property coverage.