Check my requirement

Licensing and compliance

Requirements and licensing for contractors

Your license, your bond and your insurance are three separate things that have to line up before you can pull a permit.

Check my requirement

What we can check

Your state's minimum limits

Whether a bond is required

Filing and certificate rules

Workers comp exemptions

The three requirements people confuse

License bond

A surety bond required by the licensing authority. It protects the consumer, not you.

General liability

Protects third parties from injury or damage caused by your work. Not required to hold a license in most states, but required by nearly every contract.

Workers compensation

Required in almost every state once you have employees. Separate from general liability and not a substitute for it.

What a licensing board will ask for

Requirements vary, but these come up repeatedly across states.

Licensing and filing questions

Does my general liability satisfy the license requirement?

Only if the limits meet or exceed the state minimum and the certificate is filed correctly. A policy below the minimum will not clear the board.

What is a license bond and do I need one?

Most states require one to hold a contractor license. It is a surety bond, not insurance, and it does not protect you from claims.

Can I get an exemption from workers compensation?

Some states allow it for sole proprietors and certain officers. The rules are strict and the penalties for a wrong exemption are severe.

Getting licensed and insured in the right order

  1. Form the entity and register with the state.
  2. Obtain the license bond the state requires.
  3. Bind general liability at or above the state minimum.
  4. File the certificate with the board, then pull permits.

Ask about licensing or filing

Tell us your state and what you are trying to satisfy.