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Contractor Insurance and Bond Requirements by State
Bond amounts are confirmed for 47 of 51 jurisdictions so far; the rest link to the board. Share of active contractor licenses with a workers' comp exemption instead of a policy: Oregon 52.1%[data.oregon.gov], California 48.7%[cslb.ca.gov].
| State | Bond | Insurance | Workers' comp |
|---|---|---|---|
| Alabama | Alabama does not require a bond for a general contractor license.[genconbd.alabama.gov] | The Alabama Licensing Board for General Contractors does not require liability insurance as a condition of a license.[alison.legislature.state.al.us] | Workers' compensation insurance is required if you regularly employ five or more employees.[alison.legislature.state.al.us] |
| Alaska | A surety bond is required at application: $25,000 for a general contractor, $20,000 for a general contractor with a residential endorsement doing…[akleg.gov] | You must file proof of public liability and property damage insurance of at least $20,000 property damage, $50,000 injury per person and $100,000…[akleg.gov] | You must show workers' compensation insurance from an Alaska-admitted insurer (or a self-insurance certificate) to the extent Alaska law requires…[akleg.gov] |
| Arizona | Set by estimated annual volume (A.R.S. 32-1152.[roc.az.gov] | No general liability insurance requirement in A.R.S. 32-1122 (application, fee and bond list) or the ROC bond and renewal pages.[azleg.gov] | Application must attest compliance with workers' compensation law and give the policy number if coverage is required (A.R.S. 32-1122(B)(1)(i)).[azleg.gov] |
| Arkansas | You must send a reviewed financial statement with every application and renewal (a compiled statement for restricted licenses under $1,500,000 per…[labor.arkansas.gov] | Arkansas sets no general liability insurance minimum for a contractor license.[labor.arkansas.gov] | Required.[labor.arkansas.gov] |
| California | $25,000 contractor bond (or $25,000 cashier's check).[cslb.ca.gov] | LLC licensees must carry liability insurance with an aggregate limit of at least $1,000,000 for five or fewer people on the personnel of record,…[leginfo.legislature.ca.gov] | Must file valid WC certificate or self-insurance certificate, or a signed exemption (no employees).[cslb.ca.gov] |
| Colorado | No surety bond is required for contractor registration (CRS 12-115-110(5) asks only for the fee, workers' comp and unemployment compliance, and a…[leg.colorado.gov] | No general-liability minimum stated in the registration statute.[leg.colorado.gov] | Evidence of compliance with Colorado workers' compensation and unemployment compensation laws is required to register.[leg.colorado.gov] |
| Connecticut | A bond is not required to register.[cga.ct.gov] | You must show proof of general liability insurance of at least $20,000, with the policy number and insurer name, when you apply.[cga.ct.gov] | State law requires every employer to secure workers' compensation for its employees under chapter 568.[cga.ct.gov] |
| Delaware | Not confirmed | Not confirmed | Not confirmed |
| District of Columbia | The Department's requirements list for general contractors and construction managers does not include a surety bond.[dlcp.dc.gov] | Commercial general liability insurance is required by class: Class A $2.5 million per occurrence, Class B $1.5 million, Class C $500,000 per…[dlcp.dc.gov] | Not confirmed |
| Florida | No surety bond is required to be certified.[leg.state.fl.us] | General and Building contractors: at least $300,000 public liability and $50,000 property damage, attested on the application.[www2.myfloridalicense.com] | Workers' compensation under ch. 440 is required, or an exemption from the Division of Workers' Compensation.[leg.state.fl.us] |
| Georgia | No bond is required for the General Contractor licenses (they prove net worth and insurance).[sos.ga.gov] | General liability per occurrence: Residential-Basic $300,000.[sos.ga.gov] | Workers' compensation insurance is required only if the contractor has 3 or more employees in Georgia.[sos.ga.gov] |
| Hawaii | The board can require a bond of at least $5,000 from a general or specialty contractor, depending on the applicant's finances and experience.[capitol.hawaii.gov] | You must carry liability and property damage insurance, with proof on file with the board, and keep it continuous.[cca.hawaii.gov] | You must show workers' compensation insurance (or self-insurance or an exclusion under chapter 386) before the license is issued, and keep it…[cca.hawaii.gov] |
| Idaho | Idaho does not require a bond for contractor registration.[dopl.idaho.gov] | You must file a certificate showing a general liability policy of at least $300,000 single limit, including products and completed operations…[dopl.idaho.gov] | You must file a certificate showing workers' compensation coverage, or a statement explaining why coverage is not required for you.[dopl.idaho.gov] |
| Illinois | $20,000 surety/indemnification bond or letter of credit naming IDPH as obligee.[dph.illinois.gov] | Certificate of insurance naming IDPH as holder: $100,000 general liability, $300,000 bodily injury, $50,000 property damage per occurrence.[dph.illinois.gov] | $500,000 workers' compensation if the contractor has any employee.[dph.illinois.gov] |
| Indiana | Indiana does not require a state bond for plumbing contractors.[secure.in.gov] | The state plumbing license law does not set a liability insurance minimum for licensed contractors.[iga.in.gov] | The state plumbing license law does not set a workers' compensation condition for licensees.[iga.in.gov] |
| Iowa | A $25,000 surety bond is required only if your principal place of business is outside Iowa (or you show you are prequalified with the Iowa DOT).[dial.iowa.gov] | Iowa does not require general liability insurance to register.[dial.iowa.gov] | You must comply with Iowa workers' compensation law and give evidence of coverage every year, or show you are exempt under Iowa Code 87.11 or state…[dial.iowa.gov] |
| Kansas | No surety bond is listed on the registration application.[ag.ks.gov] | Certificate of general liability insurance of at least $500,000, naming the Office of the Kansas Attorney General as certificate holder, plus…[ag.ks.gov] | Applicants must show workers' compensation coverage, or an exemption or self-insurance affidavit.[ksrevisor.org] |
| Kentucky | Kentucky does not require a surety bond for electrical licenses.[apps.legislature.ky.gov] | An electrical contractor must carry general liability insurance of at least $1,000,000 and show proof of workers' compensation and unemployment…[apps.legislature.ky.gov] | Required.[apps.legislature.ky.gov] |
| Louisiana | Louisiana does not require a contractor license bond.[lslbc.louisiana.gov] | Home improvement GL min $100,000.[lslbc.gov] | Certificate required for residential/HI.[lslbc.gov] |
| Maine | Not confirmed | Not confirmed | Not confirmed |
| Maryland | No bond is required if you meet the Commission's financial solvency guidelines.[labor.maryland.gov] | Contractors must carry general liability insurance of at least $500,000 and show proof at application and every renewal.[mgaleg.maryland.gov] | Not confirmed |
| Massachusetts | Massachusetts does not require a surety bond to register as a Home Improvement Contractor or to hold a Construction Supervisor License.[mass.gov] | Neither the HIC registration nor the CSL exam eligibility requires you to show general liability insurance.[mass.gov] | State law requires every employer to provide workers' compensation coverage for its employees, either through insurance or by being licensed as a…[malegislature.gov] |
| Michigan | No surety bond requirement appears in Article 24 (MCL 339.2401-2412) or on the BCC-2000 application.[legislature.mi.gov] | No general-liability minimum appears in Article 24 or on the BCC-2000 application.[legislature.mi.gov] | No workers' compensation filing appears in Article 24 or on the BCC-2000 application.[legislature.mi.gov] |
| Minnesota | No bond for residential building contractors and remodelers.[revisor.mn.gov] | Commercial general liability insurance with premises, operations, products and completed operations coverage: at least $100,000 per occurrence and…[revisor.mn.gov] | The application must include a Minnesota workers' compensation insurance certificate and an employment insurance account number.[revisor.mn.gov] |
| Mississippi | Mississippi does not require a contractor license bond.[msboc.us] | Commercial applicants must carry general liability insurance of at least $300,000 per occurrence and $600,000 aggregate, with the Board listed as…[msboc.us] | You must give the Board a certificate of workers' compensation insurance if you have 5 or more employees.[msboc.us] |
| Missouri | The state does not hold a bond.[revisor.mo.gov] | You must carry $500,000 in liability insurance.[revisor.mo.gov] | The statewide license requirements in the statute do not include workers' compensation proof.[revisor.mo.gov] |
| Montana | Montana does not require a contractor license bond.[boards.bsd.dli.mt.gov] | The license does not require general liability insurance.[mca.legmt.gov] | The application must include proof of compliance with Montana workers' compensation laws, and Montana does not accept other-state workers'…[mca.legmt.gov] |
| Nebraska | No bond is required to register.[nebraskalegislature.gov] | No general liability insurance is required to register.[nebraskalegislature.gov] | Contractors with one or more employees must file a workers' compensation certificate of insurance (ACORD 25) naming the Department of Labor as…[dol.nebraska.gov] |
| Nevada | Every license needs a bond or cash deposit, amount set by the Board between $1,000 and $500,000 based on license type, monetary limit and the…[leg.state.nv.us] | No general liability insurance requirement for licensure appears anywhere in NRS 624 or NAC 624.[leg.state.nv.us] | Proof of industrial (workers' compensation) insurance and occupational disease coverage, a self-insurer certificate, or an affidavit that the…[leg.state.nv.us] |
| New Hampshire | Not confirmed | Not confirmed | Not confirmed |
| New Jersey | Every registrant must also keep 'additional security' (a compliance bond, bank letter of credit, or other approved security) of $10,000 for…[njconsumeraffairs.gov] | General liability insurance of at least $500,000 per occurrence, plus workers' compensation insurance unless exempt.[njconsumeraffairs.gov] | Workers' compensation insurance is required unless the business is exempt by law.[njconsumeraffairs.gov] |
| New Mexico | A $10,000 surety bond from a surety authorized in New Mexico is required at the start and at every renewal.[srca.nm.gov] | The Act sets no general liability insurance minimum.[rld.nm.gov] | Licensees must comply with the state Workers' Compensation Act, and failing to carry required workers' compensation insurance is grounds for…[rld.nm.gov] |
| New York | No state contractor license | ||
| North Carolina | No bond is required if the applicant shows enough working capital: Limited needs $17,000 working capital or $80,000 net worth.[nclbgc.org] | No general liability insurance requirement for licensure in G.S. 87-10 or in the Board's rules (the only insurance provisions concern the Board's…[ncleg.gov] | Anyone applying for a building permit on a $40,000+ project must show workers' compensation insurance as required by Chapter 97 (G.S. 87-14(a)(2)).[ncleg.gov] |
| North Dakota | North Dakota does not require a contractor license bond.[ndlegis.gov] | You must file a certificate of liability insurance with your application, in the same name as the license, listing the North Dakota Secretary of…[sos.nd.gov] | If you have employees living in North Dakota, you need a current certificate of payment from Workforce Safety & Insurance (WSI).[sos.nd.gov] |
| Ohio | No bond requirement in ORC 4740 or OAC 4101:16-2-09.[codes.ohio.gov] | Contractor's liability insurance including complete operations coverage of at least $500,000, in the licensee's (or assigned business entity's) name.[codes.ohio.gov] | Any Ohio employer with one or more employees must carry workers' compensation, normally by paying premiums into the state insurance fund run by the…[codes.ohio.gov] |
| Oklahoma | Active electrical contractors must file a $5,000 license bond with the Construction Industries Board.[oklahoma.gov] | Active contractors must carry general liability insurance of at least $50,000 combined single limit for bodily injury and property damage, with the…[oklahoma.gov] | Active contractors must show workers' compensation coverage, or an exemption or self-insurance affidavit, when they first activate the license and…[oklahoma.gov] |
| Oregon | Residential General $25,000.[oregon.gov] | Residential General $500,000/occ.[oregon.gov] | Required if the business has employees (commercial contractors must carry).[oregon.gov] |
| Pennsylvania | No bond requirement in HICPA.[palegis.us] | Proof of liability insurance of at least $50,000 personal injury and $50,000 property damage (self-insurance attestation allowed) at registration.[palegis.us] | Not confirmed |
| Rhode Island | Rhode Island does not require a surety bond to register as a contractor.[webserver.rilegislature.gov] | You must carry public liability and property damage insurance of at least $500,000 combined single limit, and give the board proof of it at…[webserver.rilegislature.gov] | You must carry workers' compensation insurance as required under chapter 29 of title 28 of the General Laws, and show the board evidence of it at…[webserver.rilegislature.gov] |
| South Carolina | No surety bond is required if you show the minimum net worth or working capital for your group on a financial statement.[llr.sc.gov] | South Carolina does not require general or mechanical contractors to carry liability insurance as a condition of the Contractor's Licensing Board…[scstatehouse.gov] | Workers' compensation insurance is required if you regularly employ four or more employees in South Carolina.[scstatehouse.gov] |
| South Dakota | You must deposit a $10,000 undertaking (a bond or equivalent security) with the Commission, plus a $50 deposit at application and again at each…[dlr.sd.gov] | You must keep public liability insurance on file with the Commission: at least $100,000 per occurrence and $300,000 aggregate for bodily injury, and…[dlr.sd.gov] | The state electrical contractor license does not list workers' compensation proof among its requirements.[dlr.sd.gov] |
| Tennessee | No bond is required to obtain a contractor license.[tn.gov] | General liability by monetary limit: up to $500,000 limit needs $100,000 coverage.[tn.gov] | Workers' compensation required unless the applicant has no employees and has an exemption or Construction Services Provider registration with the…[tn.gov] |
| Texas | No surety bond requirement in Occupations Code ch. 1305 or in TDLR's contractor application requirements.[tcss.legis.texas.gov] | General liability, minimum $300,000 per occurrence (property damage and bodily injury combined), $600,000 aggregate, and $300,000 aggregate for…[tdlr.texas.gov] | Applicant must provide proof of workers' compensation coverage, a certificate of authority to self-insure, or a statement that it elected not to…[tdlr.texas.gov] |
| Utah | No set license bond.[le.utah.gov] | General liability insurance of at least $1,000,000 per incident and $2,000,000 total, with the Division of Professional Licensing (DOPL) listed as…[commerce.utah.gov] | With employees: a workers compensation certificate naming DOPL as certificate holder, plus Utah withholding tax and unemployment registrations.[commerce.utah.gov] |
| Vermont | The electricians' licensing law does not require a bond.[legislature.vermont.gov] | Not confirmed | Vermont employers must secure workers' compensation for their employees by insurance, guarantee insurance or approved self-insurance.[legislature.vermont.gov] |
| Virginia | No license bond.[law.lis.virginia.gov] | No general liability insurance is required for licensure in the Class A, B, C entry rules or renewal rule (18VAC50-22-40, -50, -60, -130).[law.lis.virginia.gov] | Not a license condition in 18VAC50-22.[law.lis.virginia.gov] |
| Washington | General contractor $30,000.[app.leg.wa.gov] | General liability: $200,000 public liability + $50,000 property damage, or $250,000 combined single limit.[lni.wa.gov] | Industrial insurance (L&I) account required if employees work in WA.[app.leg.wa.gov] |
| West Virginia | There is no surety bond for the license itself.[code.wvlegislature.gov] | West Virginia sets no general liability insurance minimum for the license.[wvclboard.wv.gov] | Required: you must be registered with the state workers' compensation fund and the unemployment fund and swear to it by affidavit before the license…[wvclboard.wv.gov] |
| Wisconsin | Either a surety bond of at least $5,000, or liability insurance (see insurance).[docs.legis.wisconsin.gov] | As an alternative to a bond, a general liability policy of at least $250,000 per occurrence, from an insurer authorized or eligible as a surplus…[docs.legis.wisconsin.gov] | A contractor required by Wisconsin law to carry workers' compensation must have a policy from an insurer authorized in the state, or be…[docs.legis.wisconsin.gov] |
| Wyoming | Not confirmed | Not confirmed | Not confirmed |
What is the difference between a contractor bond and insurance?
A license bond pays the state or a customer when the contractor breaks license law, up to the bond amount, and the surety then collects from the contractor. General liability insurance pays for damage or injury the contractor's work causes. States set one, both or neither; the table shows each state's rule.
Sources
- OR CCB via data.oregon.gov (g77e-6bhs) (data.oregon.gov, 2026-10-27)
- CA CSLB License Master (cslb.ca.gov data portal) (cslb.ca.gov, 2026-10-26)