General contractor license requirements by state: NEXT Insurance guide

As a general contractor, it’s crucial to meet state license requirements to ensure smooth project execution and client satisfaction.

However, each state has varying requirements for general contractors at both the state and local levels. It’s important to understand the licensing process and everything you need to do before you spend money on an application.

You’ll also want to make sure you have the right general contractor insurance, which can help cover the requirements for getting licensed in some states and help protect your business once you start working with clients.

We also have state guides for other trades, including handypersons, carpenters, electricians, HVAC technicians, landscapers, roofing, painters and plumbers.

The list is in alphabetical order and includes links for additional resources in each state.

Jump ahead:

• States A-E
• States F-J
• States K-O
• States P-T
• States U-Z

Alabama

License required: Yes

General contractor licensing in Alabama is managed by the Alabama Licensing Board for General Contractors (LBGC) for commercial and public projects, and by the Alabama Home Builders Licensure Board (HBLB) for residential construction.

• Commercial / public work: A license is required for projects worth $100,000 or more (effective Oct. 1, 2024) and for swimming pools over $5,000. Applicants must submit three references, financial statements from a certified accountant and pass both a trade and business and law exam. The application fee is $300 for prime contractors and $150 for subcontractors, filed at least 30 days before a quarterly board meeting.
• Residential construction: A home builder license is required for residential projects costing more than $10,000. Applicants must pass two exams (trade and business/law) and pay a $350 initial licensing fee.

Required business insurance in Alabama:

• Proof of general liability insurance is required for commercial contractor applications.
• Workers’ compensation insurance may be required if you have five or more employees.
• Residential builders are not required to show proof of insurance for licensing, though coverage is recommended and may be needed for permits or contracts.

Learn more about general contractor license requirements in Alabama.

Alaska

License required: Yes

General contractor licensing (called “registration” under Alaska law) is managed by the Alaska Division of Corporations, Business & Professional Licensing (CBPL). Contractors must register before bidding or performing work. 

Applicants must choose among these registration types:

• General Contractor with Residential Endorsement (required when residential work exceeds 25% of structure value) — needs a 16-hour cold-climate course and pass a residential exam 
• General Contractor without Residential Endorsement (for commercial work or residential remodels under 25% value) — no residential exam required 
• Handyman contractor (projects valued ≤ $10,000) 

Required business insurance in Alaska:

• A surety bond of $25,000 is required for general contractors 
• General liability insurance is also required with minimum coverage limits (e.g. $20,000 property damage, $50,000 bodily injury, $100,000 multiple persons) 
• Workers’ compensation insurance is required if the business has employees (or is structured as a corporation / LLC)

Arizona

License required: Yes

General contractor licensing in Arizona is overseen by the Arizona Registrar of Contractors (AZ ROC). A state license is required for nearly all construction, alteration or repair work unless the total project cost is under $1,000 and no permit is required.

License types include:

• General Residential Contractor (B-class) – for residential work.
• General Commercial Contractor (B-class) – for commercial projects.
• General Dual Contractor (KB-class) – covers both residential and commercial work.

Applicants must designate a qualifying party with at least four years of verifiable experience and pass both the trade and Arizona Statutes and Rules (SRE) exams. A surety bond is required, with the amount based on license type and annual volume.

Required business insurance in Arizona:

• Workers’ compensation insurance is required for all businesses with employees.
• General liability insurance is recommended but not required for licensure.

Learn more about general contractor license requirements in Arizona.

Arkansas

License required: Yes

General contractor licensing in Arkansas is managed by the Arkansas Contractors Licensing Board. A license is required for residential projects over $2,000 and commercial work valued at $50,000 or more, including labor and materials.

License classifications include commercial, restricted commercial and residential builder or remodeler (limited and unlimited). Applicants must submit three references, provide financial statements and pass the Arkansas Business and Law exam. A $10,000 surety bond is required for most commercial licenses, and some classifications must show positive net worth.

Required business insurance in Arkansas:

• Workers’ compensation insurance is required if you have employees.
• General liability insurance is recommended but not required for licensure; however, it may be needed for permits or client contracts.

Learn more about general contractor license and insurance requirements in Arkansas.

California

License required: Yes

General contractor licensing in California is managed by the Contractors State License Board (CSLB). A license is required for projects over $1,000 beginning January 1, 2025 (previously $500), unless the work doesn’t need a permit and no employees are involved.

• Class A general engineering: The license for specialized engineering projects
• Class B general building: The license for managing projects involving two or more unrelated trades
• Class B-2 residential remodeling: The license involves any project to make improvements to an existing residential wood frame structure.
• Class C specialty: The license for performing different types of construction work or particular trades. Class C contractors can’t be general contractors on projects that involve multiple trades.

Applicants must document four years of verified experience, pass both a trade and business & law exam, submit fingerprints and complete an asbestos open-book exam. There is an application fee of $450 and an initial license fee of $200.

Required business insurance in California:

• A $25,000 contractor bond or cashier’s check is required for all active licenses.
• Workers’ compensation insurance is required for any business with employees. All licensed contractors must have workers’ compensation insurance on file with the CSLB by January 1, 2026, even if they have no employees.
• General liability insurance is recommended but not required for most license types.

Learn more about general contractor license requirements in California.

Colorado

License required: No (statewide)

Colorado does not require a state general contractor license. Contractor licensing is handled locally by each city or county, so requirements vary by municipality.

For example, in Denver, contractors must obtain a local license through the Denver Community Planning & Development Office. Applicants need a supervisor certificate, must pass an International Code Council (ICC) exam and meet local experience and financial standards.

Because rules differ, always check with the local building department where you plan to work before starting any project.

Required business insurance in Colorado:

• Many Colorado cities require proof of general liability insurance and workers’ compensation insurance if you have employees. 
• Some municipalities also require a bond or registration fee before issuing a license.

Learn more about Colorado general contractor license requirements.

Connecticut

License required: No (for general commercial work)

Connecticut does not issue a statewide general contractor license. However, contractors performing residential work must register with the Department of Consumer Protection (DCP).

There are two main registrations:

• Home Improvement Contractor (HIC): For repair, remodeling or improvement work on existing homes.
• New Home Construction Contractor (NHCC): For building new single-family homes or major residential construction.

Applicants must also provide business details and pay registration fees set by the DCP.

Required business insurance in Connecticut:

• Workers’ compensation insurance is required for all businesses with one or more employees.
• General liability insurance is mandatory for residential contractor registration and strongly recommended for all contractors. Both types of residential licenses require proof of general liability insurance. 

Learn more about Connecticut general contractor license requirements.

Delaware

License required: No (statewide general contractor license)

Delaware does not issue a separate state general contractor trade license, but contractors must obtain a business license through the Delaware Division of Revenue before performing any work. This serves as the state’s contractor license requirement.

The license costs $75 per year and must be secured before starting or bidding on projects. Out-of-state contractors may also need to post a surety bond with the Division of Revenue.

Required business insurance in Delaware:

• General liability insurance is required as part of the contractor registration process.
• Workers’ compensation insurance is required for businesses with employees.

Florida

License required: Yes

Florida general contractor licensing is regulated by the Department of Business & Professional Regulation (DBPR) through the Construction Industry Licensing Board (CILB).

There are two license types:

• Certified license: Allows contractors to work anywhere in Florida.
• Registered license: Limits work to specific cities or counties where you hold local competency.

Applicants must show four years of relevant experience (or a mix of education and experience), meet financial responsibility requirements and pass three state exams — Business & Finance, Contract Administration and Project Management — before applying for a license. Fingerprints and a background check are also required.

Required business insurance in Florida:

• General liability insurance is required for all licensed contractors.
• Workers’ compensation insurance is required if you have employees.

Beginning June 30, 2025, most local contractor licenses will be phased out, centralizing licensing under the state. Contractors should confirm their status with DBPR before that date.

Learn more about Florida general contractor license and insurance requirements.

Georgia

License required: Yes

General contractors in Georgia must hold a license for projects valued over $2,500, issued by the Georgia State Licensing Board for Residential and General Contractors.

Georgia offers four license types:

• General Contractor (Unlimited)
• General Contractor – Limited Tier (projects up to $500,000)
• Residential Basic Contractor (one- and two-family residences, townhomes)
• Residential Light Commercial Contractor (adds small commercial and multi-family work)

Applicants must meet specific education or experience requirements. You can qualify with a four-year degree in engineering, architecture, building construction or project management; equivalent college coursework and experience totaling at least four years; or four years of construction experience, including at least two working under a licensed general contractor.

Required business insurance in Georgia:

• General liability insurance is required for all licensees.
• Workers’ compensation insurance is required if you have three or more employees.
• Residential applicants may provide a $25,000 surety bond instead of a minimum net-worth statement.

Learn more about Georgia general contractor license and insurance requirements.

Hawaii

License required: Yes

General contractors in Hawaii must be licensed by the Department of Commerce and Consumer Affairs (DCCA), Contractors License Board for any commercial, residential or public works project valued at more than $1,000 or requiring a building permit. Licenses are issued under two main classifications: General Engineering (A) and General Building (B).

Applicants must have four years of supervisory experience within the past ten years, pass both a trade exam and a business and law exam and meet financial and character requirements. A minimum $5,000 surety bond may be required, and all licenses must be renewed biennially.

Required business insurance in Hawaii:

• General liability insurance with at least $100,000 per person / $300,000 per occurrence for bodily injury and $50,000 for property damage.
• Workers’ compensation insurance is required if you have employees.

Learn more about Hawaii general contractor license and insurance requirements.

Idaho

License required: Yes (registration, not full licensing)

Idaho requires contractors performing work valued over $2,000 (labor + materials) to register with the Idaho Contractors Board, part of the Division of Occupational & Professional Licenses (DOPL). 

To register, applicants must submit business and owner information, proof of general liability insurance or equivalent coverage and either provide workers’ compensation insurance or a statement of exemption.

Required business insurance in Idaho:

• General liability insurance with at least $300,000 single-limit coverage 
• Workers’ compensation insurance is required if you have employees; if not, submit an exemption statement. 

Learn more about general contractor license requirements in Idaho.

Illinois

License required: No (statewide)

Illinois does not issue a statewide general contractor license. Licensing is handled by local jurisdictions, such as the City of Chicago Department of Buildings.

In Chicago, a general contractor license is required for most construction, alteration, repair or demolition work. Applicants must submit a statement of financial solvency, proof of general liability insurance and workers’ compensation insurance if they have employees. 

You’ll also need to verify your business structure, provide ownership details and pay the corresponding license fee:

• Class A: $2,000
• Class B: $1,000
• Class C: $750
• Class D: $500
• Class E: $300

Required business insurance in Illinois:

• General liability insurance with limits set by city or county (Chicago requires $1 million–$5 million).
• Workers’ compensation insurance is required for businesses with employees.

Learn more about general contractor license and insurance requirements in Illinois.

Indiana

License required: No (statewide)

Indiana does not require a state general contractor license. Contractor licensing and requirements are handled at the local city or county level, so rules vary depending on where you plan to work.

Contractor applicants usually must register locally, submit proof of general liability insurance and carry workers’ compensation insurance. Some cities, like Indianapolis, also require a surety bond and specific insurance minimums (e.g. $500,000 per occurrence). 

Required business insurance in Indiana:

• General liability insurance (amounts set by local jurisdiction, often high in major cities) 
• Workers’ compensation insurance (required if you have employees or a waiver where allowed)

Learn more about Indiana general contractor license and insurance requirements.

Iowa

License required: No (statewide)

Iowa does not require general contractors to hold a trade license, but contractors with $2,000 or more in annual construction work must register with the Iowa Department of Inspections, Appeals & Licensing (DIAL).

To register, you need to provide a valid unemployment insurance account number, submit a $50 registration fee (or a signed fee-exemption form if eligible) and attach proof of workers’ compensation insurance if you have employees.

Out-of-state contractors must also file a $25,000 surety bond as part of registration. 

Required business insurance in Iowa:

• Workers’ compensation insurance is required if you have employees (or appropriate self-insured status). 
• General liability insurance is recommended but not required for most license types.

Kansas

License required: No (statewide)

Kansas does not require a state contractor license. Local governments — cities or counties — may impose contractor licensing or registration requirements depending on where you work. For example, local jurisdictions like Johnson County maintain contractor licensing programs. 

Required business insurance in Kansas:

• Workers’ compensation insurance is required for non-agricultural employers whose gross annual payroll exceeds $20,000. 
• General liability insurance requirements depend on the local jurisdiction and may be mandated by city or county licensing rules. 

Kentucky

License required: No (statewide)

Kentucky does not mandate a statewide general contractor license; instead, contractor licensing and regulation are handled at the local city or county level. Local jurisdictions may require contractors to register, obtain liability insurance or post a bond before being allowed to bid or permit projects. 

Required business insurance in Kentucky:

• Workers’ compensation insurance is required for employers with one or more employees, unless they have been authorized to self-insure or are exempt.
• General liability insurance requirements depend on the local jurisdiction and may be mandated by city or county licensing rules. 

Learn more about Kentucky general contractor license and insurance requirements.

Louisiana

General contractors in Louisiana must be licensed by the Louisiana State Licensing Board for Contractors (LSLBC). A commercial license is required for projects costing $50,000 or more (or $10,000 for plumbing, electrical, mechanical).

Residential licenses are required for residential construction or home improvements that cost $50,000 or more. Projects between $7,500 and $50,000 require a home improvement registration (unless you already hold a residential or commercial license).

Applicants must designate a qualifying party, submit financial statements, pass trade and business & law exams (if applicable) and maintain good standing with the Secretary of State. 

Required business insurance in Louisiana:

• General liability insurance: at least $100,000 (for residential, home improvement) and $50,000 for mold remediation. 
• Workers’ compensation insurance: required for residential, home improvement and mold remediation licensees.

Learn more about Louisiana general contractor license and insurance requirements.

Maine

License required: No (statewide)

Maine does not issue a state general contractor license. Contractor registration and permitting are handled locally by cities or counties, so requirements may vary.

State law requires a written contract for any home construction or improvement project valued at more than $3,000. The contract must outline the scope of work, total cost and completion timeline.

Required business insurance in Maine:

• Workers’ compensation insurance is required for all employers with one or more employees.
• General liability insurance is not required statewide but may be needed to meet local or client requirements.

Maryland

License required: Yes

In Maryland, general contractors must hold a Maryland Home Improvement Commission (MHIC) license for residential remodeling or repair work. The MHIC operates under the Maryland Department of Labor. Contractors who build new homes must register with the Home Builder Registration Unit through the Office of the Attorney General instead.

Applicants must show two years of experience in home improvement or related construction, pass a business and law exam and provide proof of financial solvency or a bond. Proof of insurance is required at application and renewal.

Commercial general contractors are licensed locally through the Clerk of the Circuit Court in the county where the work is performed.

Required business insurance in Maryland:

• General liability insurance of at least $50,000 in coverage.
• Workers’ compensation insurance is required for any business with employees.

Learn more about Maryland general contractor license and insurance requirements.

Massachusetts

License required: Yes

In Massachusetts, contractors performing home improvement work on existing one- to four-unit, owner-occupied residences must register as a Home Improvement Contractor (HIC) with the Office of Consumer Affairs & Business Regulation. For larger structural projects, additions or framing, contractors must also hold a Construction Supervisor License (CSL) issued by the Office of Public Safety & Inspections.

CSL applicants must show three years of experience in construction or design within the past ten years (education may partially substitute) and pass a state licensing exam. 

Required business insurance in Massachusetts:

• General liability insurance is required for both HIC registration and CSL licensure.
• Workers’ compensation insurance is required for employers with one or more employees.

Learn more about Massachusetts general contractor license and insurance requirements.

Michigan

License required: Yes

General contractors in Michigan must hold either a Residential Builder or Maintenance & Alteration (M&A) Contractor license, issued by the Department of Licensing and Regulatory Affairs (LARA). A license is required for any residential or mixed-use project valued at $600 or more.

Applicants must complete a 60-hour prelicensure education course approved by LARA and pass a state exam covering both trade knowledge and business and law. Commercial contractors are regulated locally and should verify licensing and permit requirements with the city or county where they operate.

Required business insurance in Michigan:

• General liability insurance is required for licensed contractors.
• Workers’ compensation insurance is required for any business with employees, unless exempt under state law.

Learn more about Michigan general contractor license and insurance requirements.

Minnesota

License required: Yes (for residential work)

Minnesota does not require a state license for general commercial contractors. However, contractors who build, remodel or improve one- to four-family residential dwellings must hold a Residential Building Contractor or Residential Remodeler license through the Department of Labor and Industry (DLI).

Applicants must designate a qualifying person, pass a state exam and provide proof of financial responsibility, including insurance.

Required business insurance in Minnesota:

• General liability insurance with at least $100,000 per occurrence, $300,000 aggregate and $25,000 property damage coverage.
• Workers’ compensation insurance is required for any business with employees.

Learn more about Minnesota general contractor license and insurance requirements.

Mississippi

General contractors in Mississippi must hold a state license from the Mississippi State Board of Contractors (MSBOC) for commercial or residential projects valued at $50,000 or more.

Applicants must pass both a Business and Law exam and a trade exam, submit financial statements and references and provide proof of insurance.

Required business insurance in Mississippi:

• General liability insurance with minimum coverage of $300,000 per occurrence and $600,000 aggregate for commercial licenses.
• Workers’ compensation insurance is required for contractors with five or more employees.

Learn more about Mississippi general contractor license and insurance requirements.

Missouri

License required: No (statewide)

Missouri does not have a statewide general contractor license. Licensing and registration are handled at the local city or county level, so requirements vary by jurisdiction. Check with local building departments before starting any project.

Required business insurance in Missouri:

• Workers’ compensation insurance is required for employers with five or more employees or one or more employees if the business operates in the construction industry.
• General liability insurance is not required statewide but is often needed to meet local licensing or contract requirements.

Montana

License required: No (statewide, but registration required)

Montana does not issue a state general contractor license, but most contractors must register with the Montana Department of Labor & Industry under the Construction Contractor Registration (CR) program. Registration is required for anyone with employees or who operates as a business entity.

Applicants must submit proof of workers’ compensation insurance (or an exemption if self-employed) and pay a $70 registration fee.

Required business insurance in Montana:

• Workers’ compensation insurance is required for contractors with employees; independent contractors may apply for an exemption.
• General liability insurance is not required by the state but may be needed for local permitting or client contracts.

Nebraska

License required: No (statewide)

Nebraska does not require a trade license for general contractors, but registration is mandated under the Nebraska Contractor Registration Act for contractors performing construction, alteration, renovation, installation, repair or additions. Registration is handled via the Nebraska Department of Labor. 

Contractors must register before doing work in the state. Registration requires business and contractor details and an election on how to treat sales tax on building materials. 

Required business insurance in Nebraska:

• Workers’ compensation insurance (or proof of exemption) is required for contractors with employees. 
• General liability insurance is not required for state registration but may be requested locally.

Nevada

License required: Yes

General contractors in Nevada must hold a state license from the Nevada State Contractors Board (NSCB) for any construction, alteration or repair of buildings or other structures.

Applicants must show four years of experience as a journeyman, foreman, supervising employee or contractor and pass both a trade exam and a business and law exam.

Under Senate Bill 130, the NSCB will begin offering a restricted contractor license by January 1, 2027 for limited-scope projects. Applicants for this license will need two years of verified experience and completion of a business counseling or similar program.

Required business insurance in Nevada:

• A contractor’s license bond between $1,000 and $500,000, based on financial strength and project scope.
• Workers’ compensation insurance is required for businesses with employees (or proof of exemption).
• General liability insurance is recommended but not required for most license types.

Learn more about Nevada general contractor license and insurance requirements.

New Hampshire

License required: No (statewide)

New Hampshire does not have a statewide general contractor license. Contractor requirements and permitting are handled at the local city or county level, so check with local building departments before starting any project.

Required business insurance in New Hampshire:

• Workers’ compensation insurance is required for all businesses with one or more employees.
• General liability insurance is not required by the state but may be needed for local permits or client contracts.

New Jersey

License required: No (statewide, but registration required)

New Jersey does not issue a statewide general contractor license. Contractors performing home improvement or home elevation work must register with the Division of Consumer Affairs as a Home Improvement Contractor (HIC). New home builders and commercial contractors are typically licensed or permitted at the local level.

Beginning in 2026, New Jersey will transition to a formal licensing system under the Home Improvement and Home Elevation Contractors Licensing Act. The law establishes two new oversight bodies — the Home Improvement and Home Elevation Contractor Board (HIHEC) — which will set education, ethics and financial security rules. Licensing requirements, including new education standards, are expected to take effect by February 1, 2026.

Required business insurance in New Jersey:

• General liability insurance is required, with new minimums (e.g., $500,000 per occurrence).
• Workers’ compensation insurance is required for employers.
• Contractors must also maintain a bond or letter of credit under the new law.

Learn more about New Jersey general contractor license and insurance requirements.

New Mexico

License required: Yes

General contractors in New Mexico must hold a state license from the Construction Industries Division (CID) of the Regulation & Licensing Department (RLD). Common classifications include GB-2 (Residential) and GB-98 (General Building). A license is required for most construction work exceeding $7,200 annually in revenue.

Applicants must designate a Qualifying Party (QP) with verified experience — typically two to four years, depending on license type. Up to two years of education may substitute for experience. The QP must pass both a trade exam and a business and law exam administered by PSI.

Required business insurance in New Mexico:

• General liability insurance and a contractor license bond are required as part of financial responsibility.
• Workers’ compensation insurance is required for businesses with three or more employees.

Learn more about general contractor license requirements in New Mexico.

New York

License required: No (statewide)

New York does not issue a state general contractor license. Licensing and permitting are handled by local municipalities (cities, counties or towns), so you should verify requirements in the location where you plan to work.

For example, In New York City, general contractors must register with the Department of Buildings (DOB) to work on one-, two- or three-family homes. Contractors performing remodeling or repair work on existing residential properties must also obtain a Home Improvement Contractor license through the Department of Consumer and Worker Protection (DCWP). Applicants must complete a background check, provide proof of workers’ compensation insurance and post a $20,000 surety bond (or enroll in the city’s trust fund). 

Required business insurance in New York:

• General liability insurance is not mandated by the state, but local jurisdictions or clients often require it.
• Workers’ compensation insurance is required under New York law for businesses with employees.

North Carolina

License required: Yes

General contractors in North Carolina must hold a state license from the North Carolina Licensing Board for General Contractors (NCLBGC) for any project valued at $40,000 or more.

License classifications include Building, Residential, Highway, Public Utilities, and Specialty Contractor. Applicants can hold more than one classification if they meet the qualifications. Licenses are also limited by monetary tiers: Limited, Intermediate and Unlimited, based on proof of financial responsibility or a surety bond.

Applicants must be at least 18, legally registered to do business and pass the NASCLA-accredited building exam (or a state trade exam) plus a business and law exam. The process typically takes about 30 days after background review and exam approval.

Required business insurance in North Carolina:

• General liability insurance is not required for licensure but is strongly recommended.
• Workers’ compensation insurance is required for businesses with three or more employees.

Learn more about North Carolina general contractor license requirements.

North Dakota

License required: Yes

All contractors in North Dakota must hold a state license issued by the North Dakota Secretary of State for projects valued at more than $4,000. A “contractor” includes anyone who constructs, repairs, alters or demolishes buildings, highways, pipelines or other structures and improvements.

Licenses are issued by classification based on project size:

• Class A: Unlimited project value
• Class B: Up to $500,000 per project
• Class C: Up to $300,000 per project
• Class D: Up to $100,000 per project

Applicants must provide business registration details, proof of general liability insurance and evidence of workers’ compensation coverage (or an exemption if self-employed).

Required business insurance in North Dakota:

• General liability insurance is required to obtain a license.
• Workers’ compensation insurance is required for all employers with one or more employees. North Dakota is a monopolistic state, meaning workers’ comp coverage must be purchased through the North Dakota Workforce Safety & Insurance (WSI) agency.

Ohio

License required: No (statewide for general contracting)

Ohio does not issue a statewide general contractor license. However, licenses are required for electrical, plumbing, HVAC, hydronics and refrigeration work through the Ohio Construction Industry Licensing Board (OCILB).

To apply for a state trade license, applicants must be at least 18 years old, a U.S. citizen or legal resident and have at least five years of trade experience (or be a registered engineer). You must pass both trade and business exams, show proof of general liability insurance and pay a $25 application fee.

Local jurisdictions such as Cleveland, Columbus and Cincinnati require separate general contractor or home improvement licenses, so verify local rules before beginning work.

Required business insurance in Ohio:

• General liability insurance with at least $500,000 in coverage.
• Workers’ compensation insurance must be purchased through the Ohio Bureau of Workers’ Compensation, as Ohio is a monopolistic state.

Learn more about Ohio general contractor license requirements.

Oklahoma

License required: No (statewide)

Oklahoma does not issue a state general contractor license. Licensing and permit requirements are handled by local municipalities or counties, so check with local authorities before beginning work.

Required business insurance in Oklahoma:

• Workers’ compensation insurance is required for most employers who have full-time or part-time employees (unless exempt)
• General liability insurance is not required by the state, but may be mandated by local licensing, contractual requirements or clients

Learn more about general contractor license requirements in Oklahoma.

Oregon

License required: Yes

All contractors performing construction, alteration or repair work in Oregon must hold a state license from the Construction Contractors Board (CCB). Applicants can apply for a Residential, Commercial or Dual (Residential/Commercial) endorsement.

You must complete a 16-hour prelicense training course, pass a state exam and submit an application with a Responsible Managing Individual (RMI). A $400 application fee applies beginning July 1, 2025. Licenses are valid for two years and require continuing education for renewal.

Required business insurance in Oregon:

• A surety bond is required — between $15,000 and $25,000 for residential licenses and higher for commercial classifications.
• General liability insurance is mandatory, with coverage minimums based on license type (typically $100,000–$500,000 for residential contractors).
• Workers’ compensation insurance is required for businesses with employees.

Learn more about Oregon general contractor license requirements.

Pennsylvania

License required: No (statewide)

Pennsylvania does not issue a statewide general contractor license. However, contractors who perform home improvement work totaling more than $5,000 per year must register with the Pennsylvania Office of Attorney General under the Home Improvement Consumer Protection Act (HICPA). Registration is required for any contractor who repairs, remodels or renovates residential property.

Required business insurance in Pennsylvania:

• General liability insurance is required for home improvement contractor registration, with at least $50,000 in coverage.
• Workers’ compensation insurance is required for any business with employees.

Learn more about general contractor license requirements in Pennsylvania.

Rhode Island

License required: No (statewide), but registration is mandatory

All contractors and subcontractors performing residential or commercial construction, remodeling or repair work in Rhode Island must register with the Contractors’ Registration and Licensing Board (CRLB).

Applicants must complete a 5-hour pre-registration education course and submit proof of general liability insurance and, if applicable, workers’ compensation coverage. Registrations are valid for two years and require continuing education for renewal.

Required business insurance in Rhode Island:

• General liability insurance is required with a minimum of $500,000 in coverage and the CRLB must be listed as the certificate holder (new requirement effective 2024).
• Workers’ compensation insurance is required for all employers with one or more employees.

South Carolina

License required: Yes

In South Carolina, contractors must hold a General or Mechanical Contractor License from the South Carolina Contractor’s Licensing Board (LLR) for any commercial or industrial project exceeding $10,000 in total cost.

Residential construction is regulated separately by the South Carolina Residential Builders Commission (RBC). A Residential Builder License is required for new construction, repair or improvement of single-family homes when the cost exceeds $5,000.

Applicants for a General, Mechanical or Residential Builder License must show two years of relevant experience, pass both a trade exam and a business and law exam and demonstrate financial responsibility through documentation or bonding.

Required business insurance in South Carolina:

• General liability insurance may be required based on license classification and project type.
• Workers’ compensation insurance is required for businesses with four or more employees.

Learn more about general contractor license requirements in South Carolina.

South Dakota

License required: No (statewide)

South Dakota does not issue a statewide general contractor license. Licensing and registration are handled at the local city or county level, so requirements vary by location. Check with local building departments before beginning any project.

Required business insurance in South Dakota:

• Workers’ compensation insurance is not required by state law but is strongly recommended for businesses with employees.
• General liability insurance is not required statewide but may be needed for local permitting or client contracts.

Tennessee

License required: Yes

In Tennessee, a contractor’s license is required before bidding or negotiating projects valued at $25,000 or more. This applies to anyone overseeing or performing construction, repair or installation on buildings, land, highways or utilities. Licenses are issued by the Tennessee Board for Licensing Contractors under the Department of Commerce & Insurance.

Applicants must provide proof of experience, submit a financial statement and pass both a Business & Law exam and, when applicable, a trade exam. In 2024, Tennessee updated its financial statement standards, allowing greater flexibility for compiled or reviewed statements based on the project’s monetary limit.

Required business insurance in Tennessee:

• General liability insurance is required for all licensed contractors.
• Workers’ compensation insurance is required for businesses with five or more employees.

Learn more about general contractor license and insurance requirements in Tennessee.

Texas

License required: No (statewide)

Texas does not issue a statewide general contractor license. Licensing and registration are handled at the city or county level, so requirements vary by location. 

For example, Dallas requires contractors to register with the city, while Austin generally requires project-specific permits.

Required business insurance in Texas:

• Workers’ compensation insurance is not required by state law for most businesses but is strongly recommended. Some public projects or private contracts may mandate it.
• General liability insurance is not required by the state but is highly recommended to help protect against property damage or injury claims.

Learn more about Texas general contractor license and insurance requirements.

Utah

License required: Yes

General contractors in Utah must hold a state license from the Division of Occupational and Professional Licensing (DOPL) for any project valued at $3,000 or more, including labor and materials. License classifications include B-100 (General Building), R-100 (Residential and Small Commercial) and E-100 (General Engineering).

Applicants must show two years of experience within the past ten years, meet financial responsibility standards and pass both a trade exam and a business and law exam.

Required business insurance in Utah:

• General liability insurance is required, with coverage of at least $100,000 per incident and $300,000 aggregate, naming DOPL as a certificate holder.
• Workers’ compensation insurance is required for contractors with employees; those without employees may qualify for an exemption.

Learn more about Utah general contractor license and insurance requirements.

Vermont

License required: No (statewide)

Vermont does not require a statewide general contractor license. Licensing and permitting are handled at the local city or county level, so requirements vary by jurisdiction. Check with your local building department before starting any construction work.

Required business insurance in Vermont:

• Workers’ compensation insurance is required for employers with one or more employees, including part-time staff.
• General liability insurance is not required by the state but is strongly recommended to help protect against property damage or injury claims.

Virginia

License required: Yes

General contractors in Virginia must hold a state license from the Department of Professional and Occupational Regulation (DPOR), Board for Contractors. License classifications include Commercial Building Contractor and Residential Building Contractor, each available under one of three license classes:

• Class A: Unlimited project value.
• Class B: Projects up to $120,000 per job and $750,000 annually.
• Class C: Projects between $1,000 and $10,000, with an annual cap of $150,000.

Applicants must complete a pre-license education course, designate a Qualified Individual with at least 1–5 years of experience (depending on class) and pass the required business and law exam.

Required business insurance in Virginia:

• Workers’ compensation insurance is required for businesses with two or more employees.
• General liability insurance is recommended and often required for contracts and local permitting.

Learn more about Virginia contractor license requirements.

Washington

License required: Yes

All contractors in Washington must register with the Washington State Department of Labor & Industries (L&I) before performing any construction, remodeling or repair work. There is no separate trade exam for general contractors, but registration is mandatory for both General Contractors and Specialty Contractors.

Applicants must provide proof of a $12,000 surety bond, show general liability insurance and register their business with the Secretary of State.

Required business insurance in Washington:

• General liability insurance is required for all registered contractors (minimum $200,000 public liability and $50,000 property damage or a combined single limit of $250,000).
• Workers’ compensation insurance is required for employers with one or more employees. As it is a monopolistic state, coverage must be purchased through the L&I.

Learn more about general contractor requirements in Washington.

West Virginia

License required: Yes

General contractors in West Virginia must hold a state license from the West Virginia Contractor Licensing Board, part of the Division of Labor, for any project valued at more than $2,500. License classifications include General Building, General Engineering, Residential and various specialty trades.

Applicants must pass both a trade exam and a business and law exam and submit proof of insurance and financial responsibility.

Required business insurance in West Virginia:

• General liability insurance is required for all licensed contractors.
• Workers’ compensation insurance is required for businesses with employees.
• A wage bond or wage bond affidavit may be required for contractors with employees performing commercial work.

Wisconsin

License required: Yes

General contractors in Wisconsin must hold a Dwelling Contractor license to obtain building permits for projects involving one- or two-family dwellings. The individual responsible for the work must also hold a Dwelling Contractor Qualifier license issued by the Department of Safety and Professional Services (DSPS).

The qualifier must complete a 12-hour state-approved education course and pass an exam. Businesses must provide proof of financial responsibility and general liability insurance to apply.

Required business insurance in Wisconsin:

• General liability insurance with a minimum of $250,000 per occurrence is required.
• Workers’ compensation insurance is required for businesses with employees.

Learn more about general contractor license requirements in Wisconsin.

Wyoming

License required: No (statewide)

Wyoming does not issue a statewide general contractor license. Contractor licensing and registration are handled at the local city or county level, so requirements vary by jurisdiction. Check with your local building department before beginning any project.

Required business insurance in Wyoming:

• Workers’ compensation insurance is required for most employers with one or more employees and is administered through the Wyoming Department of Workforce Services, as Wyoming is a monopolistic state.
• General liability insurance is not required statewide but may be needed for local licensing or contracts.

Contractor license info by state

Learn more about contractor license requirements in the following states:

Alabama	Kentucky	Oklahoma
Arizona	Louisiana	Oregon
Arkansas	Maryland	Pennsylvania
California	Massachusetts	South Carolina
Colorado	Michigan	Tennessee
Connecticut	Minnesota	Texas
Florida	Mississippi	Utah
Georgia	Nevada	Virginia
Hawaii	New Jersey	Washington
Idaho	New Mexico	Wisconsin
Illinois	North Carolina
Indiana	Ohio

How NEXT helps general contractors protect their businesses

Licensing and insurance requirements for general contractors vary across the U.S. Before starting work, verify your state’s rules and ensure you’re properly insured. NEXT makes it fast, easy and affordable to protect your small business — and you can do it all online.

We’ll ask a few questions about your business and give you a quote. You can select your coverage options and buy your policy in about 10 minutes. Your certificate of insurance will be available immediately, and you can access your policy 24/7 via web or mobile app.

If you have questions, our licensed, U.S.-based insurance professionals are available to help.

Start a free quote with NEXT.

This information has been provided as a service. It is correct and up-to-date to the best of our knowledge; however, it is in no way intended to offer legal advice and you must always consult with local authorities before you make any business decisions. Regulations and requirements may change at any time.