Subcontractor insurance vs CIS: what’s the difference?

Updated 2026-09-14 · general information, not legal or insurance advice

It’s easy to assume a subcontractor who’s “CIS registered and verified” is sorted. They’re two completely separate things, and confusing them leaves you exposed.

CIS is tax

The Construction Industry Scheme (CIS) is an HMRC arrangement: as a contractor you deduct money from a subcontractor’s payments and pass it to HMRC toward their tax and National Insurance. “Verifying” a sub under CIS just tells you the deduction rate to apply. It says nothing about whether they’re insured.

Insurance is risk

A sub’s Employers’ and Public Liability cover is what protects against injury and damage claims — and what keeps them off your renewal audit as an uninsured, labour-only cost. CIS status has no bearing on any of it.

The takeaway

You need both, tracked separately: CIS handled by your accountant/payroll, and insurance certificates collected, checked and kept current for every sub. Don’t let a CIS tick imply an insurance one. CoverWatch handles the insurance side — collecting and chasing certificates automatically so cover never lapses unnoticed.