top
Contractor

Virginia general contractor license and insurance requirements

Matt Crawford image
By Matt Crawford
Jan 11, 2021 min read

If your business offers construction-related services in Virginia, a general contractor license is mandatory. However, the type of license you’ll need depends on the size and type of projects your business will perform. 

To obtain a Virginia general contractors’ license, you’ll apply with the Board for Contractors in the Virginia Department of Professional and Occupational Regulation. 

While navigating the licensing process can be challenging, we'll help make it easier with all the key information you need to know. Continue reading to learn about:

  • Starting a contractor business in Virginia
  • Virginia general contractor license requirements 
  • Protecting your general contractor business with insurance

If you plan to work in other states outside of Virginia, check out our guide to general contractor license requirements by state

How to become a contractor in Virginia

Virginia doesn’t license individuals, only businesses. That means you must start a general contracting business to obtain a general contractor license in this state. 

You can choose any business structure you want, but the most common options are sole proprietorships, limited liability companies (LLCs), corporations and partnerships. You must also register the name of your business with the Virginia State Corporation Commission.

Once you start your business, you can begin the process of obtaining a license. The good news is, if you have employees, they won’t all need one — they can work under your company’s general contractor license.

Also, if you’re already licensed in another state, you may be able to take advantage of the Virginia general contractor license reciprocity program, which allows you to skip taking a licensing exam in Virginia.

General contractor license types

General contractor licenses in Virginia have two parts: class and specialty.

License class is determined by the size (in dollars) of the project you’re working on:

  • Class A: No project cost limits or annual limits
  • Class B: $129,000 per-project limit and $750,000 annual project limit
  • Class C: $10,000 per-project limit at $150,000 annual project limit

License specialty is designated by a two- or three-letter code which is determined by the type of work you’ll be doing. There are many specialties, but the most common are the following:

  • Residential Building (RBC): Allows you to build new homes.
  • Home Improvement (HIC): Allows you to complete renovations, remodels and repairs of existing homes.
  • Commercial Building (CBC): Allows you to build new commercial properties.

To hold a specialty on your license, the person who is the designated Qualified Individual (QI) must meet all the required eligibility criteria for that area of specialization. See a complete list of contractor specialties in Virginia.

Similar to other states, professions such as electrical, plumbing and HVAC are considered specialized trades, and you must obtain a tradesman license to work in these types of areas.

What are the requirements to have a general contractor license in VA?

To obtain your general contractor license in Virginia, you must take the following steps:

  • Register your business with the State Corporation Commission.
  • Register your business with Virginia Tax.
  • Choose your license class and specialty (if applicable).
  • Identify all Responsible Members of the business.
  • Identify a Qualified Individuals (QI) for each specialty license requested. 
  • Identify a Designated Employee (for Class A and B licenses). 
  • The Designated Employee for a Class A licenses must pass the General, Virginia and Advanced portions of the exam.
  • The Designated Employee for a Class B licenses must pass the General and Virginia portions of the exam.
  • For Class C, you must have two years of experience in your specialty but no exam is required. 
  • Class A and B license applicants must submit a financial statement form, CPA review/audit, and a Surety Bond form. (Class A requires $45,000 net worth/equity, Class B requires $15,000 net worth/equity.)
  • Complete the pre-license education course approved by the Board of Contractors.
  • Complete the application and send it in with the required fee. 

The average processing time for applications is 30 days if everything is filled out properly. Upon approval, the license will be issued after the initial review and sent in the mail. 

How much does a Virginia general contractor license cost?

 The amount you’ll spend obtaining your license depends on your license class:

  • Class A: $385
  • Class B: $370
  • Class C: $235

All license classes require an additional $50 annual business registration fee. Licensing exams and preparation courses also come with fees, but the amount you’ll pay for those depends on the test and course provider you use.

Insurance requirements for Virginia general contractors

In addition to obtaining the proper licensing for your business, you need to have business insurance in Virginia in place to protect your small business.

Workers’ Compensation insurance for general contractors

Virginia requires workers’ compensation if you employ more than two employees, including subcontractors. This coverage helps cover the cost of medical bills and lost wages if you or an employee are injured on the job.

Commercial Auto insurance for general contractors

Commercial auto insurance covers you and your business vehicles. Virginia requires auto insurance for all drivers in the state, including those driving for commercial purposes.

General Liability insurance for Virginia contractors

General liability insurance protects you if your business is found responsible for injuring someone other than an employee or causing property damage. Virginia doesn’t require liability insurance for general contractors, but coverage may be required to obtain certain permits. It can offer important financial protection to keep your business moving forward.

How Next Insurance helps Virginia general contractors

If you’re starting your own general contracting business, Next Insurance can help you get the customized coverage you need quickly and easily. You can complete the online application process and have a certificate of insurance in less than 10 minutes. 

We’re 100% dedicated to helping small businesses and self-employed professionals protect their businesses. Our licensed, U.S.-based advisors are standing by to answer all your questions. 

Get a free quote today.

Matt Crawford image
By Matt Crawford
Matt Crawford is Associate Content Director at Next Insurance and a small business insurance specialist.
Check Prices
Check Prices