In construction, missing just one bid can stall your momentum. While talent and timing get most of the attention, there’s an overlooked barrier that quietly blocks many subcontractors from growing: insurance gaps.
The Hidden Growth Barrier: Insurance Gaps
Most GCs and project owners require proof of insurance before a subcontractor can step on site. But here’s what’s less talked about: many qualified subcontractors don’t bid at all — not because of skills or interest, but because they can’t afford the required insurance.
Why Insurance Matters Before the Bid
- Access starts with coverage: Without the right insurance, you may never make it past prequalification.
- First impressions matter: GCs want to see you’re “project-ready” — and insurance is part of that.
- Risk signals stability: Adequate coverage isn’t just a checkbox; it reflects your financial health.
Real-World Impact: Lost Bids, Lost Revenue
A lack of adequate insurance coverage can prevent subcontractors from bidding or result in lost bids. A report from the Urban Institute emphasizes that stringent insurance requirements can disproportionately affect minority-owned businesses.
Meanwhile, general contractors report reduced bid participation in key trades, limiting their ability to maintain competitive pricing and meet procurement goals.
Remove the Barrier!
Here’s how subcontractors can turn insurance from a barrier into a growth lever:
- Pegbo has partnered with Next Insurance to help our members address any gaps in insurance coverage
- Next Insurance is a one-stop shop for construction business insurance.
- You can save up to 25% when you buy construction insurance with Next.
- Get your free quote today.
The Bottom Line
If your business isn’t growing like it should, the issue may not be your bid strategy — it could be your insurance.
Don’t let coverage gaps keep you off the shortlist. The right policy isn’t just a requirement — it’s a competitive edge.
