A good subcontractor expands what you can offer. A bad one wrecks your reputation and your insurance. The difference is mostly in the vetting and the paperwork. Both take an hour upfront and save weeks of cleanup later.
Form W-9 with the sub's legal name and TIN, before they do any work. You need this to issue a 1099-NEC at year-end. Don't pay them a dime without it.
COI showing GL coverage, with your business named as an Additional Insured (not just Certificate Holder). The endorsement form should be CG 20 10 or CG 20 38.
Signed subcontractor agreement covering scope, payment terms, schedule, insurance requirements, and indemnification.
Pay subs on milestones tied to verified work, not on calendar dates. Collect lien waivers matching each payment so the sub can't come back later claiming non-payment on already-paid work.
Yes — before they do any work. The W-9 is what gives you the legal name and TIN you need to issue a 1099-NEC if you pay them $600 or more in a year.
General liability at style="max-width:780px;margin:0 auto;padding:48px 24px;font-family:system-ui,-apple-system,sans-serif;line-height:1.55;color:#0f172a"M minimum, workers' comp (or signed waiver if they're a true sole proprietor with no employees), and you named as Additional Insured on their GL.