CONTRACTOR LICENSING GUIDE
What Insurance Do I Need to Get My Contractor’s License?
Almost every licensing state requires proof of general liability insurance before they’ll issue a contractor license. Here’s exactly what you need.
General Liability Is the Core Requirement
The primary insurance requirement for contractor licensing is a commercial general liability (GL) policy. The GL policy must meet minimum limits specified by the state licensing board for your license classification.
Typical minimum requirements: $300,000 per occurrence / $600,000 aggregate at the low end (some states), up to $1,000,000 per occurrence / $2,000,000 aggregate for higher-tier or commercial contractor licenses. Florida’s Certified General Contractor license requires $1M/$2M. California requires $1M per occurrence for most classifications.
What the COI must show: Your business name as the insured, the policy effective and expiration dates, the GL limits at or above the required minimums, and in many states, the licensing board named as certificate holder (e.g., ‘Florida Construction Industry Licensing Board’ as certificate holder).
Some states also require workers compensation if you have employees, and a surety bond (separate from insurance). The bond is not insurance — it’s a financial guarantee. See the bond requirements page for details.
The key: get your insurance in place before you apply. Most state applications require proof of insurance with the submission. You cannot apply and add it later.
Related Questions
What GL limits do I need?
Depends on your state and license classification. Most states require $300K–$1M per occurrence. Check your specific state board’s requirements for your classification.
Does the COI need to name the licensing board?
In many states yes. Confirm this requirement with your agent when ordering the COI — it’s easy to add but must be done before issuance.
Can I use my existing personal liability policy?
No. Contractor licensing requires a commercial general liability policy, not a personal policy. Commercial GL is structured differently and is what licensing boards accept.
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