Understanding contractor insurance
Whatever the policy says, the state sets the minimum. Requirements differ enough between states that the table is worth checking before you work somewhere new.
The policy does not change. What changes is the requirement wrapped around it: who licenses contractors, whether general liability is required to hold that license, whether workers compensation can be exempted, and the size of the license bond.
Understand four things about your own policy before you need it: what counts as your work, who is an insured, whether coverage is occurrence or claims made, and what your classifications actually say.
Verified against state licensing authorities and statutes in an October 2026 research pass. Where no figure is published, the table says so rather than estimating.
| State | Licensing authority | GL required for license | Workers compensation | License bond |
|---|---|---|---|---|
| Alabama | Alabama Licensing Board for General Contractors; Alabama Home Builders Licensure Board (residential) | Yes | Required above a threshold | None at state level |
| Alaska | Alaska Division of Corporations, Business and Professional Licensing - Construction Contractors | Yes | Required, any employees | None at state level |
| Arizona | Arizona Registrar of Contractors (ROC) | Yes | Required, any employees | None at state level |
| Arkansas | Arkansas Contractors Licensing Board (ACLB) | Yes | Required above a threshold | None at state level |
| California | Contractors State License Board (CSLB) | No | Required, any employees | $25,000 |
| Colorado | No statewide general contractor license - licensing is by local jurisdictions (Colorado DORA licenses electrical and plumbing trades) | varies | Required, any employees | None at state level |
| Connecticut | Connecticut Department of Consumer Protection (DCP) - Home Improvement Contractor and New Home Construction Contractor registration | Yes | Required, any employees | None at state level |
| Delaware | Delaware Division of Revenue - Contractor Registration; no statewide general contractor license | varies | Required, any employees | None at state level |
| Florida | Florida Department of Business and Professional Regulation (DBPR) - Construction Industry Licensing Board (CILB) | Yes | Required, any employees | None at state level |
| Georgia | Georgia Secretary of State - State Licensing Board for Residential and General Contractors | Yes | Required above a threshold | None at state level |
| Hawaii | Hawaii Department of Commerce and Consumer Affairs (DCCA) - Contractors License Board | Yes | Required, any employees | None at state level |
| Idaho | Idaho Division of Occupational and Professional Licenses (IDOPL) - Idaho Contractors Board | Yes | Required, any employees | None at state level |
| Illinois | No statewide general contractor license - Illinois Department of Financial and Professional Regulation (IDFPR) licenses roofing contractors | varies | Required, any employees | None at state level |
| Indiana | No statewide general contractor license - licensing is local; Indiana Professional Licensing Agency licenses specific trades | varies | Required, any employees | None at state level |
| Iowa | Iowa Division of Labor - Contractor Registration (Iowa Workforce Development); no statewide general contractor license | Yes | Required, any employees | None at state level |
| Kansas | No statewide general contractor license - regulation is local; roofing contractors register with the Kansas Attorney General | varies | Required above a threshold | None at state level |
| Kentucky | No statewide general contractor license - Kentucky Department of Housing, Buildings and Construction (DHBC) licenses plumbing and electrical trades | varies | Required, any employees | None at state level |
| Louisiana | Louisiana State Licensing Board for Contractors (LSLBC) | Yes | Required, any employees | None at state level |
| Maine | No statewide general contractor license - licensing is municipal; Maine Office of Professional and Occupational Regulation licenses specific trades | varies | Required, any employees | None at state level |
| Maryland | Maryland Home Improvement Commission (MHIC), Maryland Department of Labor; no statewide general contractor license | Yes | Required, any employees | None at state level |
| Massachusetts | Massachusetts Division of Professional Licensure - Construction Supervisor License; Home Improvement Contractor (HIC) registration | Yes | Required, any employees | None at state level |
| Michigan | Michigan Department of Licensing and Regulatory Affairs (LARA) - residential builders and maintenance/alteration contractors; no statewide general contractor license | Yes | Required, any employees | None at state level |
| Minnesota | Minnesota Department of Labor and Industry (DLI) - Residential Building Contractors and Remodelers; no statewide general contractor license | Yes | Required, any employees | None at state level |
| Mississippi | Mississippi State Board of Contractors (MSBOC) | Yes | Required above a threshold | None at state level |
| Missouri | No statewide general contractor license - licensing is local; Missouri Division of Professional Registration licenses specific trades | varies | Required above a threshold | None at state level |
| Montana | Montana Department of Labor & Industry, Building Standards Division - Construction Contractor License (CCL) Program | No | Required, any employees | None at state level |
| Nebraska | Nebraska Department of Labor - Contractor Registration Program (Contractor Registration Act) | No | Required, any employees | None at state level |
| Nevada | Nevada State Contractors Board (NSCB) | No | Required, any employees | $1,000 to $500,000, set by the Board at license approval (residential pool/spa contractors must also file a consumer protection bond of $10,000-$400,000) |
| New Hampshire | No statewide general contractor license. NH Office of Professional Licensure and Certification (OPLC) licenses electricians, plumbers and mechanical contractors; municipalities license general contractors. | No | Required, any employees | None at state level |
| New Jersey | New Jersey Division of Consumer Affairs, Regulated Business Section - Home Improvement Contractor Business (HICB) registration, N.J.S.A. 56:8-136 et seq. | Yes | Required, any employees | $10,000 / $25,000 / $50,000 'additional security' (compliance bond) under N.J.S.A. 56:8-142(e)-(k), tiered by contract value |
| New Mexico | New Mexico Regulation and Licensing Department - Construction Industries Division (CID) | No | Required above a threshold | $10,000 |
| New York | No statewide general contractor license. Home improvement contractors must be licensed in New York City, Suffolk, Nassau, Westchester, Putnam and Rockland counties; NYC DCA and NYC DOB license locally. | No | Required, any employees | None at state level |
| North Carolina | North Carolina Licensing Board for General Contractors (NCLBGC) | No | Required above a threshold | None at state level |
| North Dakota | North Dakota Secretary of State - Contractor Licensing (N.D.C.C. ch. 43-07) | Yes | Required, any employees | None at state level |
| Ohio | Ohio Construction Industry Licensing Board (OCILB) - licenses electrical, HVAC, hydronics, plumbing and refrigeration contractors only; there is no state general contractor license | No | Required, any employees | None at state level |
| Oklahoma | Oklahoma Construction Industries Board (CIB) - licenses plumbing, electrical and mechanical contractors; general contractors are not state-licensed | Yes | Required, any employees | $5,000 corporate surety bond (active plumbing/electrical/mechanical contractor) |
| Oregon | Oregon Construction Contractors Board (CCB) | Yes | Required, any employees | Residential general contractor $25,000; residential specialty $20,000; residential limited $15,000; commercial general contractor level 1 $80,000; commercial specialty level 1 $55,000; commercial general/specialty contractor level 2 $25,000 (ORS 701.068/701.081/701.084) |
| Pennsylvania | Pennsylvania Office of Attorney General - Home Improvement Contractor (HIC) registration under the Home Improvement Consumer Protection Act, 73 P.S. 517.1 et seq. There is no statewide license for most construction contractors. | Yes | Required, any employees | None at state level |
| Rhode Island | Rhode Island Contractors' Registration and Licensing Board (RICRLB / CRLB) | Yes | Required, any employees | None at state level |
| South Carolina | South Carolina Contractor's Licensing Board (SC Department of Labor, Licensing and Regulation); residential builders are licensed by the SC Residential Builders Commission | No | Required above a threshold | Surety bond equal to the net worth requirement for the license group: general contractors $20,000 (Group 1) to $350,000 (Group 5); mechanical contractors $7,000 to $300,000 |
| South Dakota | No statewide general contractor license. The South Dakota Department of Labor and Regulation licenses electrical and plumbing contractors; municipalities license general contractors locally. | No | Elective for most employers | None at state level |
| Tennessee | Tennessee Board for Licensing Contractors (Tennessee Department of Commerce and Insurance) | Yes | Required above a threshold | None at state level |
| Texas | No statewide general contractor license. Texas Department of Licensing and Regulation (TDLR) licenses electricians and HVAC contractors; the Texas State Board of Plumbing Examiners licenses plumbers. | No | Elective for most employers | None at state level |
| Utah | Utah Division of Professional Licensing (DOPL) - Utah Construction Trades Licensing Act, Utah Code Title 58 ch. 55 | Yes | Required, any employees | None at state level |
| Vermont | Vermont Secretary of State, Office of Professional Regulation - Residential Contractor Registration | Yes | Required, any employees | None at state level |
| Virginia | Virginia Department of Professional and Occupational Regulation (DPOR) - Board for Contractors | No | Required above a threshold | $50,000 surety bond (optional alternative to the net worth requirement for Class A ($45,000 net worth) and Class B ($15,000 net worth) licenses), 18VAC50-22-50 and 18VAC50-22-60 |
| Washington | Washington State Department of Labor & Industries (L&I) - Contractor Registration | Yes | Required, any employees | $30,000 for general contractors; $15,000 for specialty contractors (effective July 1, 2024, first increase in more than two decades) |
| West Virginia | West Virginia Contractor Licensing Board (Division of Labor) | No | Required, any employees | None at state level |
| Wisconsin | Wisconsin Department of Safety and Professional Services (DSPS) - Dwelling Contractor certification | varies | Required above a threshold | $25,000 (or, alternatively, a general liability policy of at least $250,000 per occurrence) |
| Wyoming | No statewide general contractor license. The Wyoming Department of Workforce Services licenses electrical contractors; municipalities license contractors locally. | No | Required above a threshold | None at state level |
Where a bond or a general liability minimum is shown, it is the state-level requirement. Cities and counties frequently impose additional requirements, particularly for work above a dollar threshold or on public projects.
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Tell us your trade, payroll and the states you work in. A licensed specialist will come back with real numbers.
