Next Insurance
Michigan general contractor license and insurance requirements

Michigan general contractor license and insurance requirements

By Ashley Henshaw
May 13, 2022
7 min read

If you’re hoping to become a general contractor in Michigan, you’ll find that this state has plenty of work to go around. In fact, Michigan has a growing demand for new construction projects, particularly when it comes to new construction single-family homes.

But before you can tap into this profitable industry, you’ll need to get a professional license from Michigan’s Department of Licensing and Regulatory Affairs (LARA). There are several steps you must complete to get this license, so we’ve put together a helpful guide to walk you through the process. Learn more about how to get your general contractor license in Michigan, including: 

Do you need a license to be a general contractor?

Michigan general contractors must have a Residential Builder license to coordinate the repair, alteration, addition, subtraction or improvement of a residential structure or a combined residential and commercial structure.2

Those involved in the following trades for residential construction projects must have a Maintenance and Alteration Contractor license:3

  • Basement waterproofing
  • Carpentry
  • Concrete
  • Excavation
  • Gutters
  • House wrecking
  • Insulation work
  • Masonry
  • Roofing
  • Screens and storm sash
  • Siding
  • Swimming pools
  • Tile and marble

General contractors who are involved in commercial construction projects must contact their local county building official to secure any required permits or licenses.4

How to get a general contractor license in Michigan

The process to get your Michigan general contractor license is the same whether you are pursuing a Residential Builder license or a Maintenance and Alteration Contractor license. 

You’ll need to fulfill an education requirement and pass a test.

Step 1: Complete the education requirement

You must complete 60 hours of education courses before you can apply for a Michigan general contractor license.

Step 2: Submit your license application

After you’ve completed the education requirement, you may fill out and submit your Residential Builder or Maintenance and Alteration Contractor License. 

You must include a non-refundable $195 license fee along with a copy of your pre-licensure certificate.

Step 3: Pass the licensing examination

Upon approval of your application, you’ll be contacted by the PSI testing company to schedule your licensing examination. The exam must be taken at one of the five PSI testing centers located throughout the state. 

At the time of scheduling, you must pay the exam fee, which is $117 for Residential Builder or $70 for Maintenance and Alteration Contractor.

General contractor license requirements

All applicants must complete 60 hours of approved prelicensure education courses. This must include at least six hours in each of the following subject areas:

  • Business management, estimating and job costing
  • Contracts, liability and risk management
  • Design and building science
  • Marketing and sales
  • Michigan residential code
  • MIOSHA construction safety standards
  • Project management and scheduling

The remaining 18 hours of prelicensure education may come from other topics on the approved course list.

General contractor license renewal requirements in Michigan

Michigan Residential Builder licenses and Maintenance and Alteration Contractor licenses expire every three years. The fee to renew a license is $150.

During the first six years of licensure, you must complete 21 hours of continuing education in each of the two three-year license cycles. These 21 hours of education must include:

  • One hour covering building codes and laws related to the licensed occupation
  • One hour covering safety
  • One hour covering changes in construction and business management laws
  • 18 hours covering other approved topics

After you have been licensed for more than six years, you must complete three hours of continuing education courses during every three-year license cycle. This must include one hour on each of the main topics listed above: building codes and laws, safety and changes in laws.5

Michigan general contractor license reciprocity

Michigan does not reciprocate with any other states for general contractor licenses. If you wish to verify out-of-state experience in order to bypass the prelicensing education requirements, you must submit the following along with your application:

  • A copy of your current license and the licensing requirements for the governing entity that issued your current license
  • An out-of-state license verification form that has been completed by the licensing entity for completion

What kind of insurance does a general contractor need in Michigan?

As a licensed contractor, you need the right insurance to protect your business. There are several types of general contractor insurance that are highly recommended for general contractors in Michigan, including:

General Liability insurance

General liability insurance provides coverage for property damage, client injuries and other common work-related accidents which may occur.

Workers’ Compensation insurance

Workers’ compensation insurance protects your business if an employee gets hurt on the job. It provides coverage for related expenses, such as wage protection and medical bills.

Tools and Equipment insurance

Tools and equipment insurance protects the gear you use in your job by providing coverage for repairs and replacements if anything is stolen or damaged.

Commercial Auto insurance

Commercial auto insurance covers accident-related expenses, such as towing, rental reimbursement, and repairs, for contractors who drive for work.

Commercial Property insurance

Commercial property insurance protects any property that you rent or own for your business by providing coverage for damage and vandalism.

What is the certificate of insurance requirement?

Michigan does not impose an insurance requirement in order to apply for a Residential Builder license or Maintenance and Alteration Contractor license. However, all employers in this state must carry workers’ compensation insurance for their employees.6 

How NEXT Insurance supports Michigan general contractors

NEXT Insurance offers affordable general contractor insurance with the convenience of online services. With options like self-employed general contractor insurance and general contractor liability insurance, it’s easy to get exactly what you need to protect your business.

We specialize in helping construction professionals, including general contractors like you, get affordable insurance designed to meet their unique needs.

You can apply for coverage and get a certificate of insurance in just minutes when you use our online services on any computer or mobile device. 

Get an instant quote online today.

Are you thinking about becoming a general contractor in another U.S. state? Find out what states require general contractor licenses in our summary of general contractor license requirements.

Sources

1 MLive

2 Residential Builder License

3 Maintenance and Alteration Contractor License

4 Commercial Construction/Contractor Licensing

5 Renewal and Continuing Competency Requirements

6 Employer Insurance Requirements

Michigan general contractor license and insurance requirements

END

About the author
Ashley Henshaw is a contributing writer at NEXT Insurance and a writer and editor at BrainBoost Media. She specializes in small business topics, covering everything from insurance and branding to web hosting and cryptocurrency. Her work is focused on helping independent business owners and entrepreneurs access the tools they need to succeed.
4 Types of Construction Contracts - Building a Strong Business Foundation
Construction

4 Types of Construction Contracts - Building a Strong Business Foundation

General contractor license requirements by state: NEXT Insurance guide
Grow

General contractor license requirements by state: NEXT Insurance guide

How to Become a General Contractor With No Experience?
General Contractor

How to Become a General Contractor With No Experience?