Guides

Contractor license insurance and bond requirements by state

What each state's contractor license requires in liability insurance, workers' comp proof and bonds, for all 50 states and DC, from the agencies' own rules.

4BusinessInsurance · Published October 10, 2026

Most states and DC run some kind of statewide contractor license or registration, but what it demands in insurance varies a lot. Some set a dollar minimum for general liability. Some only want a bond, some only want proof of workers' comp, and some want all three. Others have no state general contractor license at all, so the city or county that issues your permit sets the rules. The table below gives each state's requirement as of October 2026, taken from the licensing agency's own pages or the statute or rule it enforces. Where we could not confirm a cell from an official source, it says "not verified" rather than guessing.

Every figure is a licensing floor. It is what the state needs to see before it issues or renews the license, not the limit your contracts, lenders or project owners will demand. For what a general contractor program usually carries, see the industry guide.

State-by-state table

"Local" means the state does not license general contractors and the city or county sets any requirement. "Comp proof" is what the licensing agency wants to see. Separately, every state's workers' compensation law decides whether you must carry comp at all (workers' comp and benefits requirements by state). Amounts are minimums as stated by the source listed under "Sources by state" at the end.

State License Liability minimum Bond Comp proof Agency
Alabama Commercial GC license for jobs of $100,000+ (pools $5,000+); residential home builder license over $10,000 GC: proof of liability insurance, no amount stated; home builders: not required by the law None; GC needs $10,000 net worth and working capital GC: not verified; home builder law does not address it Licensing Board for General Contractors; Home Builders Licensure Board
Alaska Contractor registration: general, residential endorsement, specialty $20,000 property damage; $50,000 injury to one person; $100,000 more than one GC $25,000; residential-only $20,000; specialty $10,000; projects of $10,000 or less $5,000 Evidence of comp or self-insurance where AS 23.30 requires it Division of Corporations, Business and Professional Licensing
Arizona ROC license: commercial, residential or dual; general or specialty None required by the license statute Scaled to annual volume: commercial general $5,000 up to $100,000; residential general $5,000 to $15,000; residential also joins the Recovery Fund or posts a $200,000 bond Attestation of compliance; policy number if coverage is required Registrar of Contractors
Arkansas Commercial license for projects of $50,000+; residential builder or remodeler license over $2,000 None in the license laws Commercial $10,000 (taxes, comp and unemployment); residential none (roofers $15,000) Proof of current comp when the comp law requires it Contractors Licensing Board
California CSLB license: Class A, B (general building), C specialties LLCs: $1 million aggregate for 5 or fewer personnel, plus $100,000 each additional, up to $5 million; other licensees not verified $25,000 contractor bond; LLCs add a $100,000 employee/worker bond Comp certificate or exemption; C-8, C-20, C-22, C-39, C-61/D-49 must carry comp regardless Contractors State License Board
Colorado No state GC license (local); from July 1, 2026, contractors on modular and manufactured homes register with the Division of Housing Local; Division of Housing registrants $1 million per occurrence Local; Division of Housing "financial surety," amount not verified Not verified DORA; Division of Housing
Connecticut No GC license; home improvement and new home construction contractor registrations $20,000 general liability for both None (guaranty fund instead) New home: name the comp insurer; home improvement: not verified Department of Consumer Protection
Delaware No GC trade license; contractor business license from the Division of Revenue Not verified Nonresident contractors file a bond, cash bond or letter of credit; amount not verified Comp certificate or self-insurer certificate before the license issues Division of Revenue
District of Columbia General contractor/construction manager endorsement, Classes A to H; home improvement endorsement GC: A $2.5 million, B $1.5 million, C and G $500,000 / $1 million aggregate, H $500,000; home improvement $50,000 / $100,000 bodily injury, $10,000 property Home improvement $25,000; GC none on the current checklist (2024 law adds bonds; effective date not verified) Comp for employees; filing method not verified DLCP
Florida Certified general, building or residential contractor General and building: $300,000 public liability, $50,000 property damage; residential: $100,000 and $25,000 No license bond; financial responsibility rules, amount not verified Affidavit of comp coverage or exemption DBPR Construction Industry Licensing Board
Georgia Residential-Basic, Residential-Light Commercial, General Contractor, GC Limited Tier $300,000 Residential-Basic; $500,000 Light Commercial, GC and Limited Tier None; net worth $150,000 GC, $25,000 Limited Tier Comp as state law requires; evidence on file for renewal Residential and General Contractors Board
Hawaii Class A general engineering, B general building, C specialty $100,000 per person / $300,000 per occurrence bodily injury; $50,000 property damage Only if the board imposes one Comp certificate, self-insurance, or statement of exclusion Contractors License Board
Idaho Contractor registration $300,000 general liability None in the registration statute Proof of comp or a statement why it is not required Division of Occupational and Professional Licenses
Illinois No state GC license (local); state roofing license, limited or unlimited Roofing: $250,000 property damage, $500,000 personal injury per occurrence Roofing limited $10,000; unlimited not verified Roofing: comp certificate or self-insurance approval IDFPR
Indiana No state GC license (local); state licenses plumbers Local Local Local Professional Licensing Agency
Iowa Contractor registration for those earning $2,000+ a year None in the registration law $25,000 for out-of-state contractors only Evidence of comp or a statement that it is not required Department of Inspections, Appeals, and Licensing
Kansas No state GC license (local); roofing contractor registration Roofing: $500,000 None Comp, exemption affidavit or self-insurance Attorney General
Kentucky No state GC license (local); state licenses plumbing, electrical, HVAC and similar trades Local Local Local Housing, Buildings and Construction
Louisiana Commercial $50,000+; residential over $50,000; home improvement $7,500+ Residential and home improvement $100,000; commercial not required Not verified Residential and home improvement: comp certificate; commercial: not required State Licensing Board for Contractors
Maine None; the state does not license general contractors (written contracts required over $3,000) None at state level None at state level None at state level Attorney General, home construction
Maryland No GC license; home improvement license $500,000 Only if solvency guidelines are not met; plus guaranty fund fee Not verified Home Improvement Commission
Massachusetts Construction supervisor license (individual); home improvement contractor registration Not verified None; home improvement guaranty fund fee $100 to $500 Not verified Office of Consumer Affairs and Business Regulation
Michigan Residential builder and maintenance and alteration contractor licenses Not verified Not verified Not verified LARA Bureau of Construction Codes
Minnesota Residential building contractor or remodeler license $100,000 / $300,000 bodily injury and $25,000 property, or $300,000 single limit None (roofers $15,000); recovery fund fee $320 to $520 DLI comp compliance certificate Department of Labor and Industry
Mississippi Commercial and residential licenses Residential: certificate naming the board, no amount stated; commercial not verified Not verified Residential: comp certificate with 5+ employees; commercial not verified State Board of Contractors
Missouri Not verified (no state GC program found; state licenses electrical contractors) Not verified Not verified Not verified Not verified
Montana Construction contractor license (from Jan 1, 2026) for firms with employees, corporations and manager-managed LLCs None in the statute None Proof of comp compliance Department of Labor and Industry
Nebraska No GC license; contractor registration None None Comp certificate naming NDOL, self-insurance approval, or statement Department of Labor
Nevada Class A general engineering, B general building; monetary limit on each license None found in NRS or NAC 624 $1,000 to $500,000, set by the board Proof of industrial insurance, self-insurance, or no-employee affidavit State Contractors Board
New Hampshire Not verified (state licenses electrical and plumbing trades) Not verified Not verified Not verified Not verified
New Jersey No GC license; home improvement contractor registration $500,000 per occurrence CGL "Additional security" required; amount not verified Comp certificate unless exempt Division of Consumer Affairs
New Mexico GB-2 residential, GB-98 general building None in the licensing rule $10,000 Not verified (noncompliance can invalidate the license) Construction Industries Division
New York No state license (local); licenses in NYC and Suffolk, Nassau, Westchester, Putnam and Rockland Local Local Local Attorney General
North Carolina Limited, intermediate or unlimited license for projects of $40,000+ None in the statute or board rules Optional in place of the financial test: $175,000, $500,000 or $1,000,000 At building permit, not at licensing Licensing Board for General Contractors
North Dakota Class A to D license for jobs over $4,000 Certificate required; amount not verified None Statement of coverage from Workforce Safety and Insurance Secretary of State
Ohio No state GC license (local); state licenses five trades Trade licensees: $500,000 Not verified Not verified Construction Industry Licensing Board
Oklahoma No state GC license (local); roofing contractor registration Roofing: $500,000 residential only; $1 million with commercial work None listed Comp certificate or proof of exemption Construction Industries Board
Oregon CCB license with residential and commercial endorsements Residential general $500,000; residential specialty $300,000; commercial general level 1 $2 million; level 2 $1 million Residential general $25,000; specialty $20,000; commercial general level 1 $80,000; level 2 $25,000 Commercial endorsement must carry comp even with no employees; proof method not verified Construction Contractors Board
Pennsylvania No GC license; home improvement contractor registration $50,000 personal injury, $50,000 property damage None listed Not verified Attorney General
Rhode Island Contractor registration $500,000 combined single limit Not verified Comp as state law requires; proof at registration and renewal Contractors' Registration and Licensing Board
South Carolina General contractor over $10,000 (Groups 1 to 5); residential builder over $5,000 Not verified GC $20,000 (Group 1) to $350,000 (Group 5), or a financial statement; residential $15,000 or financial responsibility GC not verified; residential not required by statute Contractor's Licensing Board; Residential Builders Commission
South Dakota Not verified Not verified Not verified Not verified Not verified
Tennessee License for projects of $25,000+; monetary limit set from financials Required, scaled to monetary limit; amounts not verified From July 1, 2026, optional bond of at least 50% of the monetary limit in place of a CPA statement Comp required unless exemption is proved Board for Licensing Contractors
Texas No state GC license (local); TDLR licenses trades Local Local Local TDLR
Utah DOPL license, all classifications $1 million per incident / $2 million aggregate, DOPL as certificate holder None listed on the application Comp certificate (or PEO), or Labor Commission waiver Division of Professional Licensing
Vermont Residential contractor registration for jobs over $10,000 $1 million per occurrence / $2 million aggregate None Not verified (failing to carry required comp is unprofessional conduct) Office of Professional Regulation
Virginia Class A, B or C license by contract and annual volume Not verified $50,000 bond may replace the net worth test (A $45,000, B $15,000) Not verified Board for Contractors
Washington Contractor registration: general or specialty $200,000 public liability and $50,000 property damage, or $250,000 combined $30,000 general; $15,000 specialty Industrial insurance account number Labor and Industries
West Virginia State license: general building, residential, specialty and other classes Mentioned in the board guide; amount not verified No license bond verified; wage bond rules apply Affidavit of comp fund compliance Contractor Licensing Board
Wisconsin Dwelling contractor credential (one- and two-family work) $250,000 per occurrence, or a bond instead Bond alternative ($25,000 on the DSPS page; smaller bonds cap project size) Comp policy if required, or self-insured status DSPS
Wyoming No state GC license (local); state licenses electrical contractors Local Local Local Secretary of State FAQ

How to read the table

"License" is not always a license. Washington, Idaho, Iowa, Nebraska, Rhode Island, Vermont and Alaska register contractors. Registration checks that you have the insurance, bond and comp filings; it does not test competence. California, Florida, Nevada, North Carolina, Utah and the other true licensing states also require exams, experience or a qualifying individual.

Thresholds decide who needs it. Many licenses apply only above a contract value. In Tennessee it is $25,000, in North Carolina $40,000, in Louisiana $50,000 for commercial work, in Alabama $100,000 for commercial. Below those amounts the state license is not required, but the city or county may still license you.

Classes change the numbers. Oregon is the clearest case: a commercial general contractor at level 1 needs an $80,000 bond and $2 million of liability, while a residential specialty contractor needs $20,000 and $300,000. DC sets general liability by class from $500,000 to $2.5 million. South Carolina and Arizona scale the bond to the job size or annual volume, and Nevada's board sets it case by case. If you change classes or raise your monetary limit, check whether the insurance and bond rise with it.

Read liability minimums the way the rule writes them. Some states give a single limit ($300,000 in Idaho, $500,000 in Rhode Island). Others split bodily injury and property damage, the old split-limit style (Alaska, Hawaii, Florida, Pennsylvania). A standard commercial general liability policy written at $1 million per occurrence / $2 million aggregate meets every minimum in the table. In practice the real question is whether the certificate is filed correctly.

Comp proof is about filings, not coverage. The licensing agency wants a certificate, an account number, an affidavit or an exemption on file. Whether you must carry workers' compensation depends on the state's comp law, which differs on employee counts, owners and construction rules. Florida, for example, limits construction officer exemptions. See workers' compensation insurance: how it works and the workers' comp and benefits requirements by state.

Common traps

A license bond is not insurance

The license and permit bond protects the public and the state, not you. If the surety pays a homeowner's claim on your $25,000 California bond, you owe the surety that money back under the indemnity agreement you signed. The bond does not pay for property damage you cause, an injured worker or your defense costs. Those are the jobs of general liability and workers' comp. The bond amount is also usually an aggregate for every claim during the bond term. See license and permit bonds: who needs one and how they work and surety bonds explained: how they differ from insurance, and the surety bond cost calculator for pricing.

No state license does not mean no requirement

Texas, Colorado, Indiana, Kentucky, New York and Wyoming leave general contractors to local government. New York City and the five New York counties in the table run their own licensing, and many other cities and counties set their own insurance and bond minimums. The permit desk usually asks for a certificate before a permit issues. North Carolina works the same way for comp: proof is checked at the building permit, not at licensing. Look up every jurisdiction where you pull permits, not only your home state.

Trade licenses sit on top of the general license

Even where there is no general contractor license, states license electricians, plumbers, HVAC contractors and roofers. Illinois, Kansas and Oklahoma license or register roofers with liability minimums of their own. If you self-perform a licensed trade, you need that license too. If you sub it out, check that your sub has it; see managing subcontractor insurance and certificates and the Roofing contractor insurance guide.

The certificate holder and the named insured must match

Agencies reject filings over details. Utah wants DOPL named as certificate holder, and Minnesota and Mississippi want their agency listed. Oklahoma's roofing program names the Construction Industries Board. Ohio's trade board wants coverage in the same company name as the license. If the insured name on the certificate of insurance does not match the licensed entity exactly, the filing can bounce. A lapse or cancellation notice can then suspend the license. See certificates of insurance: what they prove and what they do not and the Certificate of insurance (COI) review checklist.

Registering a new entity restarts the paperwork

A new LLC or corporation is a new licensee. California requires LLCs to carry liability insurance that corporations and sole owners do not. A new entity also needs new bonds, a new comp policy or exemption, and new certificates naming it. Changing the entity without changing the filings is a common reason a license lapses.

Key takeaways

  • At least 11 states have no state-level general contractor license, so local permit offices set the insurance rules. Check every city and county where you work.
  • Where a state does set a liability minimum, it ranges from split limits under $100,000 to $2.5 million for DC's largest class. A $1 million / $2 million CGL meets all of them, but your contracts will usually want more.
  • A license bond guarantees your compliance to the public. It is a credit you repay, not insurance for your own losses.
  • Most agencies want comp proof on file (certificate, account number or exemption), and they will suspend a license when coverage lapses.
  • Rules change. Montana's license started January 1, 2026 and Tennessee's bond option July 1, 2026. Confirm with the agency before you apply or renew.

Sources by state

Each link is the official page, statute or rule text we opened, checked in October 2026. For Missouri, New Hampshire and South Dakota we could not open an official page that answered the question, so those rows are marked not verified.

Terms used in this guide

Commercial general liability (CGL) The standard business policy for claims that your operations, premises or products injured someone or damaged property, usually on ISO form CG 00 01. License and permit bond A surety bond a government agency requires before issuing a license or permit, guaranteeing the holder will follow the law and pay those harmed. Surety bond A three-party guarantee in which a surety promises an obligee that a principal will perform or pay, with the principal bound to repay the surety for any loss. Certificate of insurance A one-page summary issued by an agent or insurer showing what coverage a business carried on the date issued, which confers no rights on the holder. Workers' compensation State-mandated no-fault insurance that pays medical care and part of lost wages for work-related injuries, in exchange for limits on employee lawsuits. Per-occurrence limit The most a liability policy will pay for all damages arising from a single occurrence, however many people are hurt or claims are made.

Related industries

General contractor insurance What a general contractor needs: CGL with the right endorsements, workers' comp, umbrella, builders risk and bonds, and why subcontract terms drive price. Roofing contractor insurance Roofing contractor insurance: fall-driven workers' comp, liability with height, torch and residential limits, storm-claim laws, and contract and state rules.

Related states

California California business insurance rules: workers' comp from the first employee, employee-paid SDI and paid family leave, pure comparative fault, 30/60/15 auto. Florida Florida business insurance rules: comp at four employees (one in construction), PIP and $10,000 property damage auto minimums, HB 837 tort reform, Citizens. Oregon Oregon business insurance rules: comp from the first worker, SAIF as a competitive state fund, Paid Leave Oregon at 1% in 2026, and 25/50/20 auto with PIP. Washington Washington business insurance rules: monopolistic L&I comp billed by hours worked, stop gap needed, 2026 Paid Leave 1.13%, WA Cares 0.58%, 25/50/10 auto. Texas Texas business insurance rules: workers' comp optional for most private employers, Texas Mutual as insurer of last resort, 30/60/25 auto, a 51% fault bar. District of Columbia DC business insurance rules: workers' comp from the first employee, a 0.75% employer-paid family leave tax, 25/50/10 auto minimums and contributory negligence.

Related tools

Workers' comp and benefits requirements by state Look up one state's workers' comp threshold, disability and paid leave programs, auto minimums and regulator, or compare two states side by side. Surety bond cost calculator Estimates a surety bond premium from a flat rate or a tiered rate schedule, adjusted for credit and subject to a minimum premium. Example rates, not a quote. Certificate of insurance (COI) review checklist Check a received certificate for the named insured, dates, limits, endorsements and insurer ratings. Each answer becomes a pass or a flag.

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