Does Fix and Flip Insurance Cover Contractors and Subcontractors?
- Jan 12
- 2 min read
One of the most common—and costly—misunderstandings among real estate investors is assuming that fix and flip insurance automatically covers contractors and subcontractors working on a rehab project.
The short answer: not entirely.
Understanding how contractor coverage works can help you avoid serious liability exposure during renovations.
What Fix and Flip Insurance Actually Covers
Fix and flip insurance is designed to protect the property owner and the investment, not the contractors themselves.
Typically, a fix and flip policy includes:
Property coverage for fire, theft, vandalism, and weather damage
Premises liability coverage for injuries occurring on the job site
Coverage for materials and supplies onsite
However, this does not replace contractor insurance.
Are Contractors Covered Under Your Policy?
In most cases, contractors and subcontractors must carry their own insurance.
Your fix and flip policy may:
Provide liability protection if you’re sued as the property owner
Cover injuries to third parties (not the contractor’s employees)
Exclude contractor negligence or poor workmanship
Why Contractors Need Their Own Insurance
Reputable contractors should carry:
If a contractor is injured and uninsured, they may attempt to file a claim against you, the property owner.
Without proper documentation, your fix and flip insurance may not cover the loss.
How Property Owners Can Protect Themselves
To reduce risk, investors should:
Require certificates of insurance (COIs) from all contractors
Verify workers’ compensation coverage is active
Ensure your fix and flip policy includes adequate liability limits
The U.S. Department of Labor outlines why workers’ compensation coverage is critical for job-site injuries.
What About Additional Insured Status?
Some fix and flip policies allow contractors to be listed as additional insureds, but this:
Does not replace their own insurance
Is usually limited in scope
Depends on carrier underwriting rules
This should be reviewed carefully with an insurance professional.
Common Coverage Gaps Investors Miss
Without proper coordination between policies:
Contractor injuries may not be covered
Lawsuits may exceed liability limits
Claims may be delayed or denied
These gaps often surface only after an accident occurs.
How Wexford Insurance Helps Fix and Flip Investors
At Wexford Insurance, we help investors:
Structure fix and flip insurance correctly
Understand contractor vs. owner liability
Ensure policies align with lender and project requirements
Avoid coverage gaps that lead to lawsuits or denied claims
👉 Request a fix and flip insurance quote from Wexford Insurance today and get expert guidance tailored to your rehab project.
