State-by-State Certificate of Insurance Requirements Guide: 2026 Compliance Map
State-by-State Certificate of Insurance Requirements Guide: 2026 Compliance Map
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Summary: State certificate of insurance requirements for construction vary widely. While most states require workers' compensation for the first employee, Texas makes it optional. General liability minimums range from no state requirement (Texas, Colorado, Maine) to mandatory coverage through L&I in Washington ($200K minimum) and licensing requirements in Utah ($100K/$300K). Automated tracking platforms solve multi-state compliance by adjusting requirements automatically based on your project’s jurisdiction.
Your contractor's insurance expired 21 days ago, and your property team missed the renewal alert. Yesterday, his crew fell through a roof, and today, OSHA's asking for documentation. Right now, you're discovering the gap.
You need an automated certificate of insurance (COI) tracking system to avoid that.
But insurance policy and limit requirements can vary dramatically across state lines. Most states do not have formal legal “COI Requirements” BUT states do have varying insurance coverage laws.
- Certificates of insurance (COIs) are documents used to show a party has insurance.
- States generally do not prescribe specific COI formats or statewide mandatory COI insurance minimums for contractors. What matters is the underlying insurance coverage it evidences.
Nearly all states require employers to have workers’ compensation insurance once they have employees, though the employee count threshold and exemptions vary dramatically by state.
States set their own rules for minimum coverage, exemptions, and enforcement for workers’ comp. Texas is often the only state without a mandatory workers’ comp requirement, other states have some form of requirement.
Risk managers face COI tracking requirements across dozens of jurisdictions for hundreds of vendor relationships in construction. One gap creates cascading exposure. Not only do you need to know which requirements apply to which projects, but you also need a vendor verification platform that does it for you automatically.
For many states:
- Contractor licensing boards may require proof of insurance (liability, workers’ comp) to issue or renew licenses, and they may accept a COI as proof.
- Specific liability minimums (e.g., $1,000,000 in Oregon) are set by the licensing authority or statute.
- Coverage requirements often differ by trade (e.g., plumbing vs. general contractor), project type (public works vs. private), and local jurisdictions.
Construction Contractor Requirements
| State | Workers’ Comp Threshold | General Liability | Key Requirements |
|---|---|---|---|
| Alabama | 1+ employee for construction; 5+ for general | $1M per occurrence / $2M per project | $2,500 to $25k bond; key differences between home builder and general contractor |
| Alaska | 1+ employee | Split limits: $20k property / $50k per person / $100k per occurrence | CBPL registration; $25k surety bond for general contractors without residential endorsement |
| Arizona | 1+ employee | $100K / $300k (residential); $1M per occurrence / $2M aggregate (state contracts | ROC license, $2,500-100K based on annual volume; 4 years of verifiable experience |
| Arkansas | 3+ employees for general; 1+ construction; 2+ building / repair work | Not required for licensing; required for projects > $50k and public work ($1M per occurrence / $2M aggregate | $10k-$15k bond; ACLB license required (>$50k commercial, >$2k residential); Business & Law exam required |
| California | 1+ employee | $1M per occurrence / $2M aggregate is standard | CSLB for most construction, GL insurance required for LLCs |
| Colorado | 1+ employee | Not required at the state level | Municipal / county licensing required; electricians / plumbers need a state license; Denver requires a Supervisor Certificate |
| Connecticut | 1+ employee | $20,000 minimum GL required for HIC registration; municipal projects typically require higher limits ($500k-$1M) | HIC registration; small projects under $1,000 / year are exempt from HIC registration; HIC registrants must also have liability insurance coverage of at least $20,000 |
| Delaware | 1+ employee | Not required by statute; commonly required by contract (typical limits $300k-$1M) | $75 license; non-resident contractors need a surety bond; gross receipts tax applies |
| Florida | 1+ construction, 4+ other | General / Building: $300k liability + $50k property damage; All others: $100k liability + $25k property damage | Prohibits independent contractor classification in construction unless an exemption is obtained |
| Georgia | 3+ employees | Residential Basic: $300k; Residential Light Commercial / General Contractor / Limited Tier: $500k per occurrence | Four-tier contractor license system; managed by the State Licensing Board for Residential and General Contractors |
| Hawaii | 1+ employee | $100k per person; $300k per occurrence; $50,000 per occurrence for property damage; state / public works require $1,000,000 per occurrence/ $2,000,000 aggregate | Projects > $1,500; one of the strictest WC requirements in the US; Workers' Comp exemptions available for owner-only businesses under specific conditions |
| Idaho | 1+ employee (Coverage must be in place before the first employee is hired) | $300k minimum required for state registration, but $1M recommended; | General contractors can contractually require subcontractors to carry workers' comp even if not legally required |
| Illinois | 1+ employee | No state license, ; $1M-$5M Chicago | Sole proprietors, corporate officers, business partners, and LLC members can opt out of coverage; some occupations are “extra-hazardous” with severe non-compliance penalties |
| Indiana | 1+ employee (independent contractors are generally excluded from coverage) | No state license (except plumbing); municipal licensing often requires GL; public works require $1M/$2M | Local requirements vary significantly; major cities require local licensing with GL / WC insurance and surety bonds; construction independent contractors need annual WC Board exemption certificates |
| Iowa | 1+ employee (independent contractors NOT covered under Iowa workers' compensation law) | Not mandated at the state level; $500k per occurrence / $500k aggregate; $250k property damage per occurrence / $250k aggregate | Contractor registration required (DIAL); $5,000 bond, WC proof, UI number mandatory even with no employees; plumbing / mechanical need Master of Record |
| Kansas | 1+ employee AND $20,000+ annual payroll (only state with payroll minimum) | $500k for state-registered roofers; municipal / county licensing often requires GL and WC | No state general contractor license; roofing contractors must register with state; municipal licensing varies (Johnson, Sedgwick, Wyandotte counties require licensing with GL/WC) |
| Kentucky | 1+ employee | Municipal licensing typically requires $100k+ GL; state requires GL for electrical / plumbing / HVAC contractors (min $250k) | Contractor is liable for workers' comp premium for uninsured subcontractor's employees; |
| Louisiana | 1+ employee | $100k minimum (home / residential improvements); $50k mold remediation | Must use ISO Commercial General Liability occurrence coverage form CG 00 01 (current form approved for use in Louisiana) or equivalent |
| Maine | 1+ employee | No state-level requirement; common municipal requirement $300k to $1M | Limited oversight compared to most states |
| Maryland | 1+ employee | $500k minimum | Insurance is a condition for obtaining and renewing a license with MHIC |
| Massachusetts | 1+ employee | Not state-mandated; typically required by contracts and municipal permits; many clients require GL before project start | HIC required for jobs over $500 each or $5,000 / year on 1-4 family owner-occupied dwellings; CSL required for structural work; not interchangeable |
| Michigan | 1+ employee (35+ hrs / wk for 13+ wks) OR 3+ employees at one time | Recommended, but not mandated at the state level; most sold policies include $1M per occurrence / $2M aggregate | LARA licensing; $600+ project threshold; Residential Builder or M&A Contractor license required; training and exam required |
| Minnesota | 1+ employee | $1M / $2M; state contracts require $2M per occurrence / $2M aggregate | Zero exposure law (2026) cracks down on on “ghost policies” |
| Mississippi | 5+ employees | $300k per occurrence / $600k aggregate (commercial contractors); state public works require $1M | $20k surety bond for general contractor licenses on projects exceeding $50k; liable for subcontractor employees even if subcontractor has less than 5 employees |
| Missouri | 1+ construction | No statewide requirement; many municipalities require GL | Construction first employee for WC; 1993 law requires WC proof / exemption for local business licenses; no state contractor license (register with Secretary of State); local licensing varies by jurisdiction |
| Montana | 1+ employee | Not state-mandated; required by municipalities and for public contracts; recommended coverage is $1M per occurrence / $2M aggregate for subcontractors | Specialty trades (electrical, plumbing) require state licensing; local municipalities have varying licensing and bonding requirements; independent contractors need exemption certificate from the Department of Labor and Industry |
| Nebraska | 1+ employee | No state requirement, but municipal requirements exist (Douglas County requires GL + $10k bond; Lincoln requires $500k minimum; York requires $300k / $100k) | State contractor registration required ($25); electrical contractors need state license; county-level licensing required |
| Nevada | 1+ employee | Not required by NSCB for licensing; effectively required for most work (typically $1M for public / private contracts) | $1k-$500k bond; state contractor license required; all licenses need surety bond ($1k-$500k based on license type, monetary limit, and experience); workers' comp mandatory at 1+ employee |
| New Hampshire | 1+ employee (LLCs / corps with fewer than 3 officers / members and no employees are exempt) | No state-level GL requirement; required by municipalities (ex: Concord is $1M per occurrence, $2M general aggregate) | No state general contractor license; business registration with the Secretary of State mandatory; public contracts $125k+ require a payment bond |
| New Jersey | 1+ employee | $500k+ (HIC minimum); industry standard $1M per occurrence / $2M aggregate | New licensing requirements Feb 2026; compliance bonds $10k-$50k based on contract value; registration with the Division of Consumer Affairs required; |
| New Mexico | 3+ employees | $50k minimum; industry recommendations $1M per occurrence / $2M aggregate | State contractor license required (Construction Industries Licensing Act); qualifying exam required; surety bond required; registration with Secretary of State / Tax & Revenue Department mandatory |
| New York | 1+ employee | $1M per occurrence / $2M aggregate; larger projects raise limits to $2M per occurrence / $4M aggregate or higher | No state-level general contractor license; licensing handled at city/county level; Scaffold Law (Labor Law §240) imposes absolute liability on contractors/owners |
| North Carolina | 3+ employees | No general liability statewide mandate, but required by most clients / projects; WC required for 3+ employees | State license required for contracts >$40k (NCLBGC); three tiers; surety bond $20k-$100k; financial statements and three references required; specialty trades need separate licenses |
| North Dakota | 1+ employee | Required for contractor licensing (must list Secretary of State as certificate holder); typical minimums $300k-$1M | State contractor license required for projects > $4k; four classes based on project value ($100-$450 fee); business registration with the Secretary of State mandatory; GL insurance + WSI workers' comp required |
| Ohio | 1+ employee | No statewide mandate for GL; municipal requirements vary; industry standard is $1M per occurrence / $2M aggregate | Trade-specific state licensing for electricians, plumbers, HVAC; bonds required ($25k Cleveland / Columbus) |
| Oklahoma | 1+ employee | No universal statewide mandate; Required for licensed trades (plumbing / HVAC $50k minimum + $5k CIB bond; electrical needs workers' comp | Required for licensed trades (plumbing/HVAC $50k minimum + $5k CIB bond; electrical needs workers' comp |
| Oregon | 1+ employee | Required by CCB (residential general $500k, commercial $1M-$2M aggregate); CCB must be certificate holder | $15k-$80k bond based on license type |
| Pennsylvania | 1+ employee | $50k personal + $50k property; Philadelphia requires $500k; industry standard $500k-$1M | HIC registration $50 fee every 2 years; 3-day cancellation period in contracts; penalties up to $10,000 for non-compliance; municipal licensing in Philadelphia ($116) and Pittsburgh ($90) |
| Rhode Island | 1+ employee | $500k CRLB holder; Commercial roofing is $2M per occurrence | Contractor registration required with CRLB; 5-hour pre-registration education; all subcontractors must register |
| South Carolina | 4+ employees | No statewide mandate; municipal requirements (e.g., $1M per occurrence / $2M aggregate minimum) | State license required for work > $5k-$10k (varies by jurisdiction); three license groups based on project value and net worth ($10k-$100k); residential work needs a bond with RBC; specialty contractors < $5k or bonded |
| South Dakota | Optional, but highly recommended | No statewide workers’ compensation mandate or GL minimum; requirements vary by municipality — Sioux Falls requires $300k, Rapid City requires $1M | State licensing for electricians / plumbers only; all contractors need a Contractor's Tax License from Dept. of Revenue; municipal licensing required in major cities (Sioux Falls, Rapid City, Watertown) |
| Tennessee | Required for all general contractors, regardless of employee count; sole proprietors with no employees can get exemption | Required for contractor licensing; minimum $100k (scales to $500k for projects $500k-$1.5M, $1M for projects > $1.5M | License takes 4-6 weeks for Board approval; principal contractors are liable for subcontractor employees; government projects require WC coverage |
| Texas | Optional | No statewide requirement; depends on municipalities and counties; $1M per occurrence / $2M aggregate is practical minimum | Specialty work like electrical, plumbing, and HVAC requires state licensing |
| Utah | 1+ employee | $100k per occurrence and $300k aggregate; $1M / $2M are recommended | Must complete a pre-license course from ABC, UHBA, or AGC; License classifications include B-100 (General Building), R-100 (Residential and Small Commercial), and E-100 (General Engineering). |
| Vermont | 1+ employee | $1,000,000 per occurrence and $2,000,000 aggregate is standard; but may include additional municipal requirements | While no general contractor license is required at the state level, licenses are required for specific trades, including electricians, plumbers, and asbestos / lead abatement. |
| Virginia | 3+ employees; Subcontractors' employees count toward total | No state-mandated requirement, but $1M recommended | 3-tier classification system; applicants must complete a pre-license education course |
| Washington | 1+ employee | $200k public liability + $50k property damage, OR $250k combined single limit | Must register with State L&I; $12,000 surety bond; coverage must be purchased through L&I |
| West Virginia | 1+ employee | Required at the state level; industry standard $1 million per-occurrence / $2 million aggregate | Must hold license from WV Contractor Licensing Board for $5,000+ for residential work or $25,000+ for commercial work. |
| Wisconsin | 3+ employees; Pay gross wages of $500 or more in any quarter for 1+ employee; | State-mandated $250,000 per occurrence; industry standard $1 million per-occurrence / $2 million aggregate | Must hold a Dwelling Contractor license; complete 12-hr education course; |
| Wyoming | 1+ employee | No statewide requirement; specific cities and projects will require proof of insurance, typically the $1M / $2M standard | For most commercial or high-risk projects, clients often require additional insured endorsements and higher; |
*These are guidelines for certificate of insurance requirements for general contractors and are not considered legal advice. Approximate guidelines based on publicly available sources; confirm with state statute, regulators, or counsel before relying on these figures.
Automated Multi-State, Multi-Industry COI Tracking
Managing certificates across multiple states, industries, and hundreds of vendors creates impossible manual demands. Some construction firms track subcontractors across 15 states. Commercial portfolios can span 30+ jurisdictions with different cycles.
Missing one New York renewal? Seven-figure exposure. Overlooking Florida's hurricane endorsement? Shutdown. Subcontractors failing to complete Utah’s pre-licensing education programs leave your construction company vulnerable.
Managing these 50 different requirement sets manually? That's where tracking systems break. Virginia Class A contractors working on Tennessee projects with California subs face three different WC thresholds, four licensing bodies, and five bond requirements. Manual COI tracking with spreadsheets can't adjust requirements automatically by jurisdiction.
AI-powered, leading COI tracking platform bcs automates multi-state, multi-industry contractor verification for you:
- bcs COI Tracking software reviews certificates across all 50 states. Instant color-coded feedback catches gaps instantly.
- 78,000+ vendor network means contractors already in-system provide certificates without logins.
- 99.7% compliance accuracy eliminates manual tracking across construction sites. Virginia Class A contractors, Rhode Island CRLB requirements, multi-state portfolios—automated tracking catches everything.
- 15 hours of labor becomes 2 hours weekly for multi-state risk managers. Construction managing 200+ subs across 20 states, commercial landlords handling mixed-use developments eliminate manual spreadsheets.
Track construction in all 50 states with one system.
Ready to eliminate manual COI tracking? Request a demo to see how bcs handles compliance management for your industry, or try free COI tracking to experience automated certificate tracking firsthand.
Frequently Asked Questions
Texas is the only state where private employers can completely opt out of workers' compensation coverage, though many contractors carry it because major projects require proof regardless of legal mandates. South Dakota doesn't mandate WC by law, but employers without coverage can be sued civilly for workplace injuries.
Mississippi requires WC for 5+ employees. South Carolina requires 4+ employees or $3,000+ annual payroll. North Carolina and Georgia require 3+ employees. Virginia requires 3+ employees. These higher thresholds create gaps where small contractors operate without mandatory coverage.
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