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Contractor License and Insurance Requirements by State

Aug 18, 2023 · 24 minutes to read

General contractors are in high demand in many parts of the country. Many states heavily regulate this occupation, and a general contractor license may be required to work in your area. You could face fines and other penalties for working without a general or home improvement contractor license.

A Smiling contractor with digital tableta

Before you walk onto a construction site or into a customer’s home, check that you meet the requirements for your state. We’ve put together this list to help you understand the general contractor license requirements in your area*, including whether general contractor insurance, such as General Liability and Workers’ Compensation coverage, is necessary.

Alabama

A general contractor license is required in Alabama to work on construction, repair, alteration or demolition projects that cost $50,000 or more. Licenses are also required for residential projects over $10,000 and swimming pools over $5,000.

Licenses are granted by the Licensing Board for General Contractors, and applicants must:

  • Pass a trade exam
  • Pass a business and law exam
  • Provide proof of relevant work experience
  • Provide proof that your business is registered, including financial statements prepared by a certified accountant
  • Include 3 references in your application
  • Pay an application fee

Is insurance required?

Yes, Alabama general contractors must show proof of their General Liability insurance when they apply for a general contractor license. You may also need Workers’ Compensation insurance if you have one or more employees.

Alaska

General contractors need a license to work in Alaska. The Alaska Department of Commerce, Community, and Economic Development oversees contractor licenses in the state. There are three licenses you can apply for:

  • General contractor with residential contractor endorsement – Allows you to work on new home construction and residential projects that total more than 25% of the value of the structure.
  • General contractor without residential contractor endorsement – Allows you to work on commercial or residential projects that total less than 25% of the value of the structure.
  • General contractor handyman – Allows you to work on commercial or residential projects that total less than $10,000.

To apply for a license, you must take a 16-hour cold climate course and may need to pass an exam. You will also need to pay a license fee.

Is insurance required?

Yes, Alaska general contractors must have General Liability and Workers’ Compensation insurance to work in the state.

Arizona

A general contractor license is required for contractors who build, repair, alter, improve, add to, subtract from, move, wreck or demolish any structure.

There are different classifications of license available that allow you to work on residential or commercial projects or both. The Arizona Registrar of Contractors oversees these applications.

To become a licensed construction contractor, you will need to:

  • Pass a trade exam
  • Pass a business management exam
  • Show 4 years of work experience
  • Purchase a surety bond

Is insurance required?

Workers’ Compensation insurance is required if you have one or more employees.

Arkansas

General contractors need a license to work in Arkansas. There are several licenses available that cover commercial and residential projects, as well as building and remodeling jobs. Licenses are granted by the Arkansas Contractors Licensing Board.

Requirements vary between different licenses, but you may need to:

  • Pass a trade exam
  • Pass a business and law exam
  • Provide a financial statement prepared by a Certified Public Accountant
  • Include 3 references in your application who can describe your work
  • Purchase a contractor’s bond

Is insurance required? Workers’ Compensation insurance is required if you have one or more employees.

California

General contractors in California must have a license for work worth more than $500. There are three types of contractor licenses granted by the California Contractors State License Board:

  • Class A – Allows work on specialized engineering projects
  • Class B – Allows you to manage projects involving two or more unrelated trades
  • Class C – Allows you to perform different types of construction work or trades. You cannot manage projects with multiple trades with this license.

To apply for a general contractor license, you will need to:

  • Meet a trades work experience requirement
  • Purchase a bond
  • Pass trade and working with asbestos exams
  • Pass a business and law exam
  • Pay application and license fees

Is insurance required?

Workers’ Compensation insurance is required if you have one or more employees.

Colorado

General contractors in Colorado do not need a state license to work. However, counties and cities may have their own general contractor license requirements that you must meet. While these typically vary, you may be asked to:

  • Pass a trade exam
  • Meet work experience requirements
  • Purchase a bond
  • Pay licensing fees

Is insurance required?

Some local areas may require general contractors to have General Liability insurance to work in the state. You will likely need Workers’ Compensation insurance if you have one or more employees.

Connecticut

Connecticut general contractors do not need a state-level license. However, you are required to register as a home improvement contractor with the Department of Consumer Protection if you work on residential properties.

A general contractor license may be required by your city or local government. Requirements typically vary, but you may need to take steps like:

  • Pass a trade exam
  • Meet work experience requirements
  • Purchase a bond
  • Pay licensing fees

Is insurance required?

Some local areas may require general contractors to have General Liability insurance to work in the state. You will likely need Workers’ Compensation insurance if you have one or more employees.

Delaware

You are not required to have a general contractor license in Delaware. However, you will need a business license and must register with the Delaware Division of Revenue.

Is insurance required?

Delaware construction businesses must have Workers’ Compensation insurance if they have one or more employees.

Florida

A general contractor license is required to work in Florida. These are granted by the Florida Department of Business and Professional Regulation.

You can apply for either a certified license (work anywhere in the state) or a registered license (work only in specific areas of the state). There are also three subclasses of license to choose from:

  • General Contractor – Allows you to work on any type of project.
  • Building Contractor – Limits you to working on commercial and residential buildings of three stories or less. You can also remodel, repair or improve buildings of any size.
  • Residential Contractor – Limits you to working on residential properties of two stories or less.

To become a general contractor in Florida, you will be required to:

  • Meet education/work experience requirements
  • Pass a trade exam
  • Pass a business and law exam
  • Show proof of financial stability

Is insurance required?

Yes, Florida general contractors must show proof of General Liability insurance to receive a license. You will also need Workers’ Compensation if you have one or more employees.

Georgia

A general contractor license is required to work on projects that total more than $2,500 in the state of Georgia. There are four tiers of licenses available through the Georgia State Licensing Board:

  • General Contractor – Allows you to work on private, commercial, industrial, public, and other building projects that total more than $2,500.
  • General Contractor – Limited tier – Allows you to work on projects less than $500,000.
  • Residential – Basic Contractor – Allow you to work on detached one-family and two-family residences and one-family townhouses (not over three stories) and adjacent structures.
  • Residential-light commercial Contractor – Allows you to perform the work of a Residential-Basic Contractor, plus work on projects for multifamily and multi-use light commercial buildings and adjacent structures.

To become a general contractor in Georgia, you will need to:

  • Meet education and work experience requirements
  • Pass a trade exam
  • Pass a business and law exam
  • Show financial statements prepared by a certified accountant

Is insurance required?

Yes, Georgia general contractors must have General Liability coverage. Each license type has its own minimum level of coverage that you must meet. You may need Workers’ Compensation insurance if you have three or more employees.

Hawaii

A general contractor license is needed in Hawaii to perform work that totals more than $1,000 or requires a building permit. The Contractors License Board, part of the Department of Commerce and Consumer Affairs Professional & Vocational Licensing Division, grants licenses based on the type of work you intend to do.

To become a general contractor in Hawaii, you will need to:

  • Meet work experience requirements
  • Pass a trade exam
  • Pass a business and law exam
  • Pay an application fee

Is insurance required?

Yes, Hawaii general contractors must provide proof of General Liability and Workers’ Compensation insurance (if applicable) to become licensed construction contractors.

Idaho

There is no statewide licensing requirement for general contractors in Idaho. However, if you perform construction work worth more than $2,000, you must register with the Idaho Contractors Board.

Is insurance required?

Workers’ Compensation insurance is required for most businesses in Idaho that have one or more employees (including part-time, full-time, seasonal and occasional workers).

Illinois

General contractors do not need a state-level license to work in Illinois. However, you will likely need to apply for licenses in different cities or counties.

Contractor license requirements tend to vary between jurisdictions, but you may need to take steps such as:

  • Provide a description of the work you will undertake
  • Submit paperwork showing that you or your business entity are financially stable
  • Purchase a surety bond
  • Pay an application and/or licensing fee

Is insurance required?

General Liability insurance may be necessary to receive a general contractor license. You may need to maintain a minimum level of coverage while you are working. Workers’ Compensation insurance might also be required if you have employees.

Indiana

A statewide general contractor license is not required in Indiana. However, you may need a license or building permits to work in some local areas.

Is insurance required?

General Liability coverage may be required for general contractors in some Indiana cities or counties. You may also need Workers’ Compensation insurance if you have employees.

Iowa

A general contractor license is not required in Indiana. However, you will need to register with the Iowa Division of Labor if you earn at least $2,000 a year from construction work.

Is insurance required?

Workers’ Compensation insurance may be required if you have employees.

Kansas

General contractor licenses are not required to work in Kansas. However, there may be local requirements that you must meet to carry out projects.

Is insurance required?

General Liability coverage may be required for general contractors in some Kansas cities or counties. Workers’ Compensation insurance might also be necessary if you have employees.

Kentucky

You do not need a general contractor license to work in Kentucky. However, your county, city or town may have their own contractor license requirements that you have to follow.

Is insurance required?

Workers’ Compensation insurance is required for most Kentucky businesses with one or more employees.

Louisiana

A general contractor license is necessary to work in Louisiana. The State Licensing Board for Contractors grants five types of licenses that you might consider:

  • Residential contractor license – For residential construction and home improvement projects worth over $75,000.
  • Commercial contractor license – For commercial construction projects worth over $50,000.
  • Residential specialty licenses – For specialty residential projects (such as roofing, masonry or swimming pools) worth over $7,500.
  • Mold remediation license – For projects involving damage caused by mold.
  • Home improvement residential – For home repair or improvement projects worth between $7,500 and $75,000 when you don’t have a residential or commercial license.

To become a general contractor in Louisiana, you will need to:

  • Pass a trade exam
  • Pass a business and law exam
  • Submit notarized financial statements
  • Pay the relevant fees

Is insurance required?

Yes, Louisiana general contractors must show proof of General Liability insurance and Workers’ Compensation insurance (if required for your business) to receive a general contractor license.

Maine

There is no statewide general contractor license in Maine. However, if you work on a home construction or home improvement project over $3,000, a written contract is required. There may also be local general contractor license requirements that you must meet.

Is insurance required?

You may need Workers’ Compensation insurance if you have employees.

Maryland

You may need a general contractor license in Maryland depending on the work you intend to do:

  • New home construction – This does not require a license, but you will need to register with the Home Builder Registration Unit (part of Maryland’s Office of the Attorney General).
  • Existing residential properties – You will need a Maryland Home Improvement Contractor’s License (MHIC) issued by the state Department of Labor, Licensing and Regulation.
  • Home improvement projects – This work requires a license from the Maryland Home Improvement Commission.
  • Commercial contractors – There is no state-level license, but you will need to register at the city and/or county level.

The steps for getting different licenses or registering as a contractor varies, but in general, you may need to:

  • Meet the work or education requirements
  • Pass a business and law exam
  • Show proof that you are financially stable
  • Pay an application and/or licensing fee

Is insurance required?

If you work on home improvement projects, you must show proof of General Liability insurance to receive a license. General Liability coverage may also be required for other registrations. Workers’ Compensation insurance is required for most businesses that have employees.

Massachusetts

General contractor licenses are necessary to work in Massachusetts. Depending on the work you do, you may apply for different types of Construction Supervisor Licenses. These are overseen by the Board of Building Regulation and Standards.

  • Unrestricted – Allows you to work on residential and commercial buildings up to 35,000 cubic feet and walls less than 10 ft high.
  • One- and Two-Family Dwellings – Allows you to work on residential one-family and two-family dwellings only.
  • Specialty – You can apply for several specialty contractor licenses, including masonry; roof covering; windows, doors & siding; insulation; and demolition.

Additionally, you may need to register as a Home Improvement Contractor to do regular repairs on an existing property.

To apply for a Construction Supervisor License, you must:

  • Have at least 3 years of work experience in building construction or design
  • Pass a construction exam
  • Pay an exam fee

Is insurance required?

You may need Workers’ Compensation insurance if you have one or more employees.

Michigan

General contractors need either a Residential Builders license or a Maintenance & Alteration Contractors license to work in Michigan. The Department of Licensing and Regulatory Affairs (LARA) grants these general contractor licenses.

To receive a license, you must:

  • Be at least 18 years old
  • Complete an approved 60-hour pre-licensing course
  • Pass an exam
  • Pay the required application fee

Is insurance required?

General Liability insurance is recommended but not required for Michigan general contractors. Workers’ Compensation insurance may be necessary, depending on how many employees you have and how long they work for you.

Minnesota

Residential contractors (including remodelers) need a general contractor license to work in Minnesota. A license is not required for general commercial contractors. Licenses are overseen by the Department of Labor and Industry.

To become a general contractor in Minnesota, you will need to:

  • Pass a trade exam
  • Pass a business and law exam
  • Submit an application after receiving your “Q number”

Is insurance required? Yes. Minnesota general contractors must provide proof of General Liability and Workers’ Compensation insurance (if relevant to your business) to receive a license.

Mississippi

You must have a general contractor license to work on projects worth more than $50,000 in Mississippi. The Mississippi State Board of Contractors grants these licenses.

You must meet contractor license requirements, such as:

  • Pass a trade exam
  • Pass a business and law exam
  • Meet work experience requirements
  • Provide three letters of reference, one from a bank and two from someone you worked with or for in the construction industry
  • Pay an application fee

Is insurance required?

Yes, Mississippi general contractors must show proof of General Liability insurance to work in the state. You will also need proof of Workers’ Compensation insurance if you have five or more employees.

Missouri

There is no statewide general contractor license in Missouri. However, you may need to meet local contractor license requirements to work in certain areas.

Is insurance required?

Missouri construction businesses must have Workers’ Compensation insurance if they have one or more employees.

Montana

You do not need a general contractor license in Montana. However, you will need to register with the Department of Labor & Industry if you have employees.

Is insurance required?

General contractors must have Workers’ Compensation insurance in Montana if they have one or more employees.

Nebraska

General contractors do not need a license to work in Nebraska. However, you must register with the Department of Labor if you provide construction, alteration, renovation, additions, installation or repair services.

Is insurance required?

Workers’ Compensation insurance is required in Nebraska if you have one or more employees.

Nevada

General contractors in Nevada must have a general contractor license. These licenses are granted by the Nevada State Contractors Board.

Nevada contractor license requirements include:

  • Meet minimum work experience requirements in construction or a related trade
  • Undergo a background check
  • Pass a trade exam
  • Pass a business and law exam
  • Submit financial statement prepared or reviewed by a certified public accountant
  • Purchase a surety bond
  • Pay an application fee

Is insurance required?

Nevada general contractors need Workers’ Compensation insurance if they have one or more employees.

New Hampshire

You do not need a state-level general contractor license to work in New Hampshire. However, there may be local contractor license requirements that you may need to meet.

Is insurance required?

Businesses in New Hampshire must have Workers’ Compensation insurance if they have one or more employees.

New Jersey

Commercial construction contractors in New Jersey are licensed at the county or city level. Residential general contractors can register for one of two licenses:

The steps for registering for each license differ, but generally, you will need to:

  • Provide relevant business details
  • Provide details of your home warranty plan
  • Pay an application fee

Is insurance required?

Proof of General Liability insurance is required for a home improvement license. Workers’ Compensation insurance is required for contractors with one or more employees.

New Mexico

General contractors must be licensed to work in New Mexico. Licenses are overseen by the Regulation and Licensing Department.

To become a general contractor in New Mexico, you will need to:

  • Be 18 years of age or older
  • Provide proof of relevant work experience
  • Pass a trade exam
  • Pass a business and law exam
  • Purchase a surety bond

Is insurance required?

New Mexico requires general contractors to have Workers’ Compensation insurance if they have one or more employees.

New York

There are no state-level general contractor license requirements in New York. However, there may be local requirements that you may need to meet before working in your county or city.

Is insurance required?

You will need Workers’ Compensation insurance if you have any employees.

North Carolina

You must have a general contractor license in North Carolina to work on projects worth more than $30,000. The North Carolina Licensing Board for General Contractors grants multiple classifications of licenses based on the type of work you plan to perform and the size of projects.

To become a general contractor in North Carolina, you will need to:

  • Be at least 18 years old
  • Meet minimum financial requirements
  • Pass a trade exam
  • Pass a background check

Is insurance required?

North Carolina law requires general contractors with three or more employees to have Workers’ Compensation insurance.

North Dakota

General contractors working on projects worth $4,000 or more need a general contractor license in North Dakota. The Secretary of State grants four classes of license (A, B, C and D) that cover contract amounts from over $500,000 per job down to under $100,000 per project.

General contractor license requirements include:

  • Sign under oath that you have relevant work experience and qualifications
  • Paying an application fee (based on the type of class of license you apply for)

Is insurance required?

Yes, you will need to provide proof of General Liability insurance to receive a North Dakota contractor license. You may also need Workers’ Compensation insurance if you have employees.

Ohio

General contractors do not need a state license in Ohio to work on projects totaling less than $1,000. Furthermore, you only need a statewide license for electrical, plumbing, HVAC, Hydronics and refrigeration work.

However, a general contractor license may be required at the local level. Licensing requirements vary from city to city or between counties. In general, you may need to:

  • Pass an exam
  • Purchase a surety bond
  • Provide a list of registered subcontractors you work with

Is insurance required?

Many cities and counties require general contractors to have General Liability insurance to receive a license. You must also have Workers’ Compensation coverage if you have one or more employees.

Oklahoma

A statewide general contractor license is not required to work in Oklahoma. However, you may need to meet local contractor license qualifications to work in your city or county.

Is insurance required?

Most small businesses in Oklahoma must have Workers’ Compensation insurance if they have one or more employees.

Oregon

You must have a license to become a general contractor in Oregon. These licenses are granted by the Oregon Construction Contractors Board.

Contractor license requirements include:

  • Completing a 16-hour pre-license training
  • Passing an exam
  • Establishing your business, including selecting a business structure and choosing a business name
  • Selecting what types of buildings you will work on
  • Purchasing a surety bond
  • Obtaining state and federal tax numbers
  • Paying the license fee

Is insurance required?

Yes, you must show proof of General Liability and Workers’ Compensation insurance (if you have employees).

Pennsylvania

General contractors do not need a state-issued license to work in Pennsylvania. However, if you work on home improvement projects that total more than $5,000 in value, you will need to register with the state Attorney General’s Office.

Is insurance required?

Yes. You must provide proof of General Liability insurance to register as a home improvement contractor in Pennsylvania. You will also need Workers’ Compensation insurance if you plan to hire employees.

Rhode Island

There is no general contractor license in Rhode Island, but you will need to register with the Contractors’ Registration and Licensing Board.

To register, you will need to:

  • Complete 5-hour preregistration course
  • Obtain a business ID number and provide date of incorporation for corporations and LLCs
  • Pay the registration fee

Is insurance required?

Yes, you must provide proof of General Liability and Workers’ Compensation insurance (if you have employees) to register as a general contractor in Rhode Island.

South Carolina

A general contractor license is required in South Carolina. To work on commercial projects totaling over $10,000, you will need to apply for a license from the Contractor’s Licensing Board. If you will be working on residential projects, you will need a Residential Builders license from the Residential Builders Commission.

The contractor license requirements for each license vary, but generally, you will need to:

  • Have a minimum amount of work experience in trades and construction
  • Pass a trade exam
  • Pass a business and law exam
  • Purchase a surety bond
  • Pay an application or licensing fee

Is insurance required?

Workers’ Compensation insurance is required for most South Carolina businesses that have employees.

South Dakota

You are not required to have a state-level general contractor license in South Dakota. However, there may be local contractor license qualifications that you must meet to work in your county, city or town.

Is insurance required?

The state of South Dakota does not require contractors to have insurance. However, policies like General Liability and Workers’ Compensation can help you protect your business finances.

Tennessee

A general contractor license is required to work on projects over $25,000 in Tennessee. These licenses are overseen by the Department of Commerce and Insurance.

To become a general contractor in Tennessee, you will need to:

  • Pass a business and law exam
  • Submit a financial statement prepared by a certified or licensed accountant
  • Submit a letter of reference from a past employer or client
  • Pay the application fee

Is insurance required?

Yes. Tennessee general contractors must show proof of General Liability and Workers’ Compensation insurance (if applicable to your business).

Texas

There is no statewide licensing requirement for Texas general contractors. However, you may need a state license if you perform electrical, plumbing or HVAC work. There may also be local contractor license qualifications that you must meet to work in your town, city, or county.

Is insurance required?

There are no insurance requirements for general contractors in Texas, though coverage could help you protect your business and personal finances.

Utah

A general contractor license is required in Utah. Licenses are granted by the Division of Professional Licensing.

To receive a general contractor license, you will need to:

  • Complete an approved prelicensure course
  • Pass a business and law exam
  • Meet the work experience requirement
  • Pay the application fee

Is insurance required?

Yes, Utah general contractors must show proof of General Liability insurance to receive a license. If you have employees, you must also provide proof of your Workers’ Compensation policy.

Vermont

There is no statewide licensing requirement for general contractors in Vermont. However, you may need to meet local contractor license qualifications to work in your area.

Is insurance required?

Workers’ Compensation insurance is required for Vermont businesses that have one or more employees.

Virginia

General contractors in Virginia must have a license. There are three types of contractor licenses granted by the Department of Professional and Occupational Regulation:

  • Class A – Allows work on projects valued at $120,000 or more, with a total value of $750,000 for all projects undertaken in a 12-month period.
  • Class B – Allows you to work on projects valued between $10,000 to $120,000, with a total value of $150,000 to $750,000 for all projects undertaken in a 12-month period.
  • Class C – Allows you to work on projects valued between $1,000 and $10,000, with a total value of less than $150,000 for all projects undertaken in a 12-month period.

To apply for a general contractor license, you may need to:

  • Complete a prelicensure education course
  • Meet relevant work experience requirements
  • Purchase a surety bond
  • Pay a licensing fee

Is insurance required?

If you have two or more employees (part-time or full-time), you must have Workers’ Compensation under Virginia law.

Washington

There is no statewide licensing requirement for general contractors in Washington. However, construction contractors must register with the Department of Labor and Industries and purchase a surety bond.

Is insurance required?

Yes. Contractors must provide proof of General Liability insurance when they register with the state.

West Virginia

A general contractor license is required to work in West Virginia. Licenses are granted by the Division of Labor Contractor Licensing Board.

To become a general contractor in West Virginia, you will need to:

  • Pass a trade exam
  • Pass a business and law exam
  • Post a wage bond (unless exempt)
  • Pay a licensing fee

Is insurance required?

Proof of Workers’ Compensation insurance is required if you have employees.

Wisconsin

You must have a Dwelling Contractor Qualifier license (general contractor license) to work in Wisconsin. Licenses are overseen by the Department of Safety and Professional Services.

Contractor license requirements in Wisconsin include:

  • Complete an approved 12-hour education course
  • Pass an exam
  • Purchase a surety bond
  • Pay an application fee

Is insurance included?

Yes, you must show proof of General Liability and Workers’ Compensation insurance (if applicable) to become licensed.

Wyoming

There is no statewide general contractor license in Wyoming. However, you may need to meet local contractor license requirements to work in certain areas.

Is insurance required?

General Liability insurance may be required for local licenses. Check with your city or county government to verify if coverage is required in your area.

This information is a general guide only and does not take into account your objectives, financial situation or needs. Always check with your local licensing board when getting or renewing your general contractor license to ensure you are meeting their current licensing requirements.
As with any insurance, coverage will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained on this guide is general only and should not be relied upon as advice. The number of quotes provided varies between products, occupations and other underwriting factors determined by the insurers.
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