What Are The Requirements To Obtain General Contractors General Liability Insurance?

To make sure you have everything to comply with your States General Contracting licensing requirements we have prepared this handy guide. Please note that requirements are constantly changing and while every effort is made to ensure the accuracy contained in this blog you need to check with any State or local government before you proceed.

To make sure you have everything to comply with your States General Contracting licensing requirements we have prepared this handy guide. Please note that requirements are constantly changing and while every effort is made to ensure the accuracy contained in this blog you need to check with any State or local government before you proceed.

I would advise you to scroll down to find your State as for many of the States we have insider tips that may save you thousands of dollars in addition to time and aggravation.

There is also a significant Catch-22 in the States that will take bonds in lieu of providing evidence of financial solvency. The bond companies require much the same information, if not more, that the State would require to show financial solvency.

A to Z

Alabama

General contractors must have a state license in Alabama to work on any construction, alteration, maintenance, repair or demolition project that costs more than $50,000. You will also need a license if you work on residential projects over $10,000.

Alabama requires three references as part of the license application. You will also need financial statements prepared by a certified accountant and other proof that your business is registered.

The license is awarded by the Licensing Board for General Contractors. Applicants must pass a trade exam, and a business and law exam. You will also need a resume of your work experience and show proof of general liability insurance. Your application with required fees $300 for general contractors, $150 for subcontractors. These applications must be submitted at least 30 days before quarterly board meetings.
Residential roofing Contractors must also provide a $10,000 bond made out to the State.

Alabama does have reciprocity with Mississippi, Tennessee, Arkansas and Louisiana. You have to be licensed for 3 years consecutively with the same classification you are wanting in Alabama. This form is called verification of license, and is included in the Prime Application and under the forms section of the Alabama State website. You will need to include a current copy of your license in one of the above States with your application.

For more information general contractor license requirements in Alabama.

Alaska

General contractors must hold a state license to work in Alaska. There are three:

Alaska General Contractor with Residential Endorsement Registration requires A $20,000 bond or a cash deposit is required. A certificate of insurance for public liability and property damage insurance and evidence of workers’ compensation insurance is required. Fees are a $250 license fee and $100 application fee.

Alaska General Contractor without Residential Contractor Endorsement Registration A $25,000 bond or a cash deposit is required. .A certificate of insurance for public liability and property damage insurance and evidence of workers’ compensation insurance. Fees are a $250 license fee and $100 application fee.

Alaska General Contractor -Handyman Registration A $5,000 bond or a cash deposit is required.
You must hold general liability insurance and worker’s compensation insurance. Fees are a $250 license fee and $100 application fee.

For more information general contractor license requirements in Alaska

Arizona

Any general contractor who builds, alters, repairs, adds to, subtracts from, improves, moves, wrecks or demolishes any structure must hold a state general contractor license to work in Arizona. There are a number of various license classifications from commercial , residential and dual license classifications for contractors that do both residential and commercial work. There is a $200 application fee along with a $580 license fee for commercial licenses. Residential fees are $180 application fee, $320 license fee and $370 recovery fund assessment.
Bonds range in the amount of $5,000 to $100,000 based on the projected amount of work performed within Arizona.

Applicants with one or more employees must provide a certificate of insurance verifying workers’ compensation insurance coverage.

For more information general contractor license requirements in Arizona.

Arkansas

A commercial license is needed if a contractor performs work of $50,000 or more, including, but not limited to, labor and materials, on a commercial project. Any project that is not a single-family residence is a commercial project.

A residential builders license is needed to build a single-family residence, if the cost of the project is more than $2,000, including, but not limited to, labor and material, unless an exception applies. A Residential Builders License also allows you to perform remodeling on a single-family residence.

Subcontractors of PROPERLY LICENSED contractors can work with a REGISTRATION certificate instead of a full license. If there is a contract with a properly licensed contractor, then that is a subcontractor. If there is a contract with the owner (written, verbal, otherwise, it does not matter) that is considered a PRIME contractor, not a subcontractor. If the PRIME contractors does not have an appropriate Commercial Contractors license, then the subcontractor would need a Commercial License.

A home improvement license is needed to do specialty work on a single-family residence, if the project is more than $2,000, including, but not limited to, labor and material. This license is for a contractor who is only responsible for certain types of work (painting, roofing, flooring, etc.). This license does not allow you to build a home or remodel a home.

The fee is $100

You need to provide:

• Three (3) references on forms approved by the State. The references should not be from a supplier or banker, unless they have observed your work and can describe it.
• Copy of the Arkansas Business and Law passing test score.
• A “Reviewed” or “Audited” financial statement from a CPA (CPA cannot be an “in-house” CPA) must be submitted showing minimum net worth requirements for license applied for.
• If you have one or more employees, you must have Worker’s Compensation insurance coverage. You will need to provide a current certificate of insurance verifying Worker’s Compensation insurance coverage.
• Fully executed $10,000.00 Contractor’s Bond is also required.

For more information general contractor license requirements in Arkansas

California

All general contractors in California must hold a state license from the California Contractors State License Board for any work worth more than $500.

Applicants with one or more employees must provide a certificate of insurance verifying workers’ compensation insurance coverage. Liability insurance, with an aggregate limit of $1 million, for licenses with five or fewer persons listed as personnel; plus an additional $100,000 for each additional personnel listed on the license; not to exceed $5 million total (LLC licenses only).

All contractors must have a $15,000 contractor’s bond on file with CSLB. An additional $12,500 qualifying individual’s bond must be filed for contractors that are qualified by a responsible managing employee.

All LLC licenses are required to obtain a $100,000 surety bond as well. This bond requires financial statements and excellent credit to obtain. If you are just starting out this can be very difficult and expensive to obtain. You should look into the possibility of forming some other type of entity. Advice of an attorney is advised.

The qualifier for a contractor license must pass both the law and business exam, and a specific trade exam, unless they meet the requirements for a waiver. No trade exam is required for the C-61 Limited Specialty license.

Several fees are also involved, including a $330 application fee and a $200 license fee. Once you have a license you’ll need to renew it every two years, which costs $450.

Learn more about general contractor license requirements in California.

Colorado

There is no General contractors State license to work in Colorado. However, many local governments have general contractor license requirements. The best practice is to google the name of the town or city where you are going to work. You will then be able find any specific requirements for qualifications, insurance and bonds required.

Connecticut

Connecticut does not require general contractors to hold a state license. However, some local governments have general contractor license requirements. The best practice is to google the name of the town or city where you are going to work. You will then be able find any specific requirements for qualifications, insurance and bonds required.

If you do work on residential properties you will be considered a home improvement contractor. Anyone who performs or offers to perform any home improvement totaling more than $200 for any single contract, or improvements totaling more than $1,000 in any 12-month period is considered a Home Improvement Contractor (HIC). In this case you will have to register with the State. The information on HIC Licensing can be found HERE.

Delaware

General contractors in Delaware do not require a trade license. You will need to obtain a business license and register with the Delaware Division of Revenue.

Florida

General Contractors must have a state license to work in Florida. The license is awarded by the Florida Department of Business and Professional Regulation. The application can be found HERE.

There are different types of licenses based on what kind of classification your business falls under:

A certified license allows contractors to work anywhere in the state.
A registered license allows contractors to only work in specific areas in the state.

A “certified contractor” means any contractor who possesses a certificate of competency issued by the department and who shall be allowed to contract in any jurisdiction in the state without being required to fulfill the competency requirements of that jurisdiction. Certified contractors are designated by an occupation code which begins with the letter “C“.

A “registered contractor” means any contractor who has registered with the department pursuant to fulfilling the competency requirements in the jurisdiction for which the registration is issued. Registered contractors may contract only in such jurisdictions. Registered contractors are designated by an occupation code which begins with the letter “R“.