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Drywall & Framing subcontractors

Drywall & Framing subcontractor COI requirements

Drywall and framing subs are labor-heavy, thin-margin firms that grow by adding sub-tier crews. Their COI defect rate sits right at the industry average, but the defects are distinctive: classification limitations that cover only interior drywall, residential exclusions on mixed-use projects, sub-tier crews without workers compensation, and CG 22 94 removing coverage for the work those crews perform.

Drywall & Framing audit

Northgate Drywall & Framing LLC

Pier 9 Residential Tower

Deficient
CGL policy
GL 1907-6634-28
AM Best
A- VII
Carrier
Prairie States Indemnity Co.
  • DeficientWC

    Two declared sub-tier crews have no workers compensation on file.

  • DeficientCG 22 94

    Subcontracted work exclusion attached to the CGL.

  • DeficientResidential

    Condominium exclusion on a project with 212 residential units.

14 rules checked, 3 deficient. Scanned Oct 14, 2026, 3:05 PM ET. Notice sent to sub and broker.
of drywall subcontractor COI packets are deficient on first review
71%
of drywall subcontractor COI packets are deficient on first review
Pikorua Security 2026 Benchmark
trade rank by defect rate, 0 points above the all-trade average
7 of 14
trade rank by defect rate, 0 points above the all-trade average
Pikorua Security 2026 Benchmark
of subcontractor and vendor COIs contain material coverage deficiencies or missing endorsements on first review
71%
of subcontractor and vendor COIs contain material coverage deficiencies or missing endorsements on first review
AGC Risk Committee Audit
of COIs claiming additional insured status fail to attach the CG 20 37 completed operations endorsement
64%
of COIs claiming additional insured status fail to attach the CG 20 37 completed operations endorsement
IRMI Construction Risk Survey

Typical exhibit

Typical drywall insurance requirements

The limits Pikorua Security's drywall rule template starts from. Your subcontract exhibit controls; set it once per project and every drywall certificate is checked against it.
Rules in template
14
Hazard tier
Significant
Typical insurance requirements for drywall subcontractors
CoverageTypical limitWhat to check
Commercial general liability (CG 00 01, occurrence)$1,000,000 each occurrence / $2,000,000 general aggregateClassification on the policy must match the scope: metal stud framing, drywall, acoustical ceilings and exterior sheathing are often rated separately.
Products-completed operations aggregate$2,000,000Water intrusion through exterior sheathing and fire-rated assembly defects are the long-tail claims.
Business auto liability$1,000,000 combined single limitCrew trucks and material deliveries; hired and non-owned autos when crews drive personal vehicles.
Umbrella / excess liability$5,000,000 each occurrence and aggregateScaffold and lift falls are the severity driver for this trade.
Workers compensation / employer's liabilityStatutory / $1,000,000 each accident, $1,000,000 disease each employee, $1,000,000 disease policy limitThe defining issue for this trade. Request WC for every sub-tier crew; uninsured sub-tier payroll is often charged back to the GC's own WC at audit.

Endorsement checklist

Forms to see attached, not just checked

A Y in the ADDL INSD column is not an endorsement. Ask for each form below by number and edition, and read the drywall sub's schedule of forms against it.

Exclusion watchlist

Exclusions that void drywall coverage

These never appear on an ACORD 25. They sit in the declarations schedule of forms and the endorsement pages, which is where Pikorua Security reads.
  • Red flag

    CG 22 94 Exclusion, Damage to Work Performed by Subcontractors on Your Behalf

    Drywall and framing contractors rely heavily on sub-tier crews. CG 22 94 deletes the subcontractor exception, so damage to the completed work caused by a sub-tier crew is no longer covered.

    Read the CG 22 94 guide
  • Red flag

    Classification limitation exclusion

    Carrier forms that limit coverage to the operations described on the declarations, such as interior drywall only. If the sub also frames exterior walls or installs sheathing, those operations are uninsured.

  • Red flag

    Residential, condominium or tract housing exclusion

    Common on interior trade policies. On podium mixed-use buildings with residential floors above, the residential portion of the scope can be excluded.

  • Red flag

    CG 21 86 Exclusion, Exterior Insulation and Finish Systems

    Framing subs that install exterior sheathing or EIFS substrate can trigger this exclusion, which removes coverage for water damage claims behind the cladding.

Sub-tier crews and workers compensation

Drywall and framing work is labor. Contractors expand capacity by bringing in sub-tier crews, often small firms or individual installers paid by the board or by the square foot. Those crews are where workers compensation disappears. If a sub-tier crew has no WC, an injured installer can look upward to the drywall sub and then to the GC, and the GC's own workers compensation carrier may charge premium for the uninsured payroll at audit.

Pikorua Security treats sub-tier crews as vendors in their own right. The drywall sub declares its sub-tiers in the broker upload link, each sub-tier receives its own request for WC and GL evidence, and the parent sub's payment application stays on hold until every declared crew is compliant.

Classification and residential limits

Interior trade policies are priced by classification. A policy rated for interior drywall installation may carry a classification limitation endorsement that excludes anything not described, such as exterior framing, sheathing, fireproofing or acoustical ceilings. A residential exclusion may also remove condominium or apartment floors on a mixed-use podium building.

These limits never appear on an ACORD 25. The only way to see them is the declarations page and schedule of forms, which Pikorua Security extracts on every packet and compares against the scope you assign to the sub in the rule template.

  • Compare the classification description on the declarations to the subcontract scope.
  • Check for residential exclusions whenever any floor of the project has dwelling units.
  • Look for CG 21 86 if the scope includes exterior sheathing or EIFS substrate.

Fire-rated assemblies and completed operations

Drywall contractors build the fire-rated walls, shafts and corridors that protect occupants. Defects in rated assemblies, penetrations and joints can surface during an inspection or, worse, during a fire. Completed operations additional insured status (CG 20 37) and a products-completed operations aggregate that is not shared with dozens of other projects (CG 25 03) are the protections that matter when that claim arrives.

How to verify a drywall sub's COI

A manual review of one COI and its endorsement packet takes 25 to 40 min (CFMA Time Study). These are the six checks, in the order Pikorua Security runs them.

  1. 1

    Match the named insured to the subcontract

    Compare the named insured on the ACORD 25 with the legal entity that signed the drywall subcontract, including the LLC or Inc. suffix. A trade name or DBA is not the contracting entity, and additional insured coverage follows the policy's named insured.

  2. 2

    Check limits against your drywall exhibit

    Confirm commercial general liability of $1,000,000 each occurrence / $2,000,000 general aggregate, an umbrella of $5,000,000 that follows form over CGL, auto and employer's liability, and statutory workers compensation.

  3. 3

    Read the endorsement pages, not the checkboxes

    A Y in the ADDL INSD or SUBR WVD column is not an endorsement. Confirm CG 20 10, CG 20 37, CG 20 01, CG 24 04, WC 00 03 13, CA 20 48 and CG 25 03 are attached as forms, and that the ongoing and completed operations forms share the same edition date.

  4. 4

    Scan the schedule of forms for drywall exclusions

    Look for CG 22 94 Exclusion, Damage to Work Performed by Subcontractors on Your Behalf, classification limitation exclusion, residential, condominium or tract housing exclusion and CG 21 86 Exclusion, Exterior Insulation and Finish Systems. None of these appear on the certificate; they sit in the declarations schedule of forms and the endorsement pages.

  5. 5

    Check carrier ratings and policy dates

    Confirm each carrier is rated A- VII or better by AM Best and that no policy expires before the drywall scope and its completed operations period are finished. Set renewal reminders at 60, 30, 15 and 0 days.

  6. 6

    Hold payment and site access until resolved

    Keep the drywall sub's pay applications and jobsite badges on hold until every finding is resolved, then file the verified packet so it is ready if you ever need to tender a claim.

Try it

Is this drywall COI compliant?

Toggle what Northgate Drywall & Framing LLC's packet shows. The verdict updates the way Pikorua Security's drywall template scores it.

What the packet from Northgate Drywall & Framing LLC shows

  • Matching editions

  • Declared in the broker upload

  • On the sub's CGL. Red flag if present.

  • Framing, drywall, sheathing

  • Condo or apartment floors. Red flag if present.

  • Both GL and WC

Switch on = present in the packet. Switch off = missing.

Deficient: 2 findings

  • WC on file for every sub-tier crew

    Uninsured crews push injury and audit cost to the GC.

  • CG 22 94 subcontracted work exclusion

    Damage caused by sub-tier work is excluded.

Pikorua Security would send a deficiency notice to the sub and its broker citing each item, and hold payment until a corrected endorsement arrives.

Questions

Drywall & Framing COI questions

Why are drywall subcontractor COIs often deficient?
Drywall and framing firms are labor-heavy and use sub-tier crews extensively. Common defects include sub-tier crews with no workers compensation, CG 22 94 removing coverage for sub-tier work, classification limitations that cover only part of the scope, and residential exclusions on mixed-use buildings. Pikorua Security's 2026 benchmark puts drywall and framing at 71% deficient on first review.
Can a GC be charged for a drywall sub's uninsured crews?
Yes. Workers compensation carriers audit the GC's payroll and subcontractor costs, and many charge premium for subcontractors that cannot show their own WC coverage. Collecting valid WC certificates for every sub-tier crew avoids that charge and the injury exposure behind it.
What is a classification limitation exclusion?
It is a carrier endorsement that restricts coverage to the operations described on the policy declarations. A drywall policy limited to interior drywall installation may exclude exterior framing or sheathing performed under the same subcontract, leaving that part of the work uninsured.

14-day free production trial

Check every drywall sub's endorsements before they mobilize.

Upload your current drywall certificates. Pikorua Security reads the endorsement pages, applies the drywall template and shows every hidden gap in 10 minutes.