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.
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.
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.
Here’s how subcontractors can turn insurance from a barrier into a growth lever:
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.