Contractor insurance requirements by state
Every state sets its own rules for workers' comp, contractor licensing and indemnity clauses. Here's what each one says, with the sources linked, and what it means for the contractor COIs on your projects.
Workers' comp is where states differ most. Most require it from the first employee, some start at three, four or five, construction often has its own lower line, and four states only allow coverage from a state fund.
License insurance minimums are a floor for getting licensed, not a standard for your project. Many states set none, and the ones that do set them well below what most project requirements ask for.
Anti-indemnity statutes limit how much of another party's negligence a contract can push onto a contractor. In a handful of states they also limit additional insured requirements.
These guides are general information, not legal advice. Confirm with the state agency, your broker or your attorney before you rely on them.
All 50 states and DC at a glance
| State | Workers' comp required at | License insurance minimum | Anti-indemnity statute voids |
|---|---|---|---|
| Alabama | 5 employees; new homes 1 | No statewide minimum | No general statute |
| Alaska | 1 employee | $50K/$100K BI, $20K PD | Sole negligence |
| Arizona | 1 employee | No statewide minimum | Sole negligence; broader for private |
| Arkansas | 3 employees; building work 2 | No statewide minimum | Sole negligence |
| California | 1 employee | Workers' comp on file; LLCs $1M | Sole negligence; active negligence on most private jobs |
| Colorado | 1 employee | No statewide minimum | Own negligence, even in part; reaches additional insured |
| Connecticut | 1 employee | No statewide minimum | Own negligence, even in part |
| Delaware | 1 employee | No statewide minimum | Own negligence, even in part |
| District of Columbia | 1 employee | No statewide minimum | No general statute |
| Florida | 4 employees; construction 1 | $300K liability, $50K PD (GC) | Own negligence, unless capped |
| Georgia | 3 employees | $500K GC; $300K residential | Sole negligence |
| Hawaii | 1 employee | Liability required | Sole negligence |
| Idaho | 1 employee | $300K single limit | Sole negligence |
| Illinois | 1 employee | No statewide minimum | Own negligence, even in part |
| Indiana | 1 employee | No statewide minimum | Sole negligence |
| Iowa | 1 employee | No statewide minimum | Own negligence, even in part |
| Kansas | $20K annual payroll | No statewide minimum | Own negligence, even in part; reaches additional insured |
| Kentucky | 1 employee | No statewide minimum | Own negligence, even in part |
| Louisiana | 1 employee | $100K (residential) | Own negligence, even in part |
| Maine | 1 employee | No statewide minimum | No general statute |
| Maryland | 1 employee | $500K (home improvement) | Sole negligence |
| Massachusetts | 1 employee | No statewide minimum | Losses the contractor didn't cause |
| Michigan | 3 employees, or 1 full-time | No statewide minimum | Sole negligence |
| Minnesota | 1 employee | $100K/$300K + $25K PD (residential) | Own negligence, even in part |
| Mississippi | 5 employees | No statewide minimum | Own negligence, even in part |
| Missouri | 5 employees; construction 1 | No statewide minimum | Own negligence, even in part |
| Montana | 1 employee | No statewide minimum | Own negligence, even in part; reaches additional insured |
| Nebraska | 1 employee | No statewide minimum | Own negligence, even in part |
| Nevada | 1 employee | Workers' comp proof | Residential contracts only |
| New Hampshire | 1 employee | No statewide minimum | Own negligence, even in part |
| New Jersey | 1 employee | $500K (home improvement) | Sole negligence |
| New Mexico | 3 employees; construction 1 | No statewide minimum | Own negligence, even in part; reaches additional insured |
| New York | 1 employee | No statewide minimum | Own negligence, even in part |
| North Carolina | 3 employees | No statewide minimum | Own negligence, even in part |
| North Dakota | 1 employee (state fund) | Liability certificate + WSI | No general statute |
| Ohio | 1 employee (state fund) | No statewide minimum | Own negligence, even in part |
| Oklahoma | 1 employee | No statewide minimum | Own negligence, even in part; reaches additional insured |
| Oregon | 1 employee | $500K residential GC; $2M commercial L1 | Own negligence, even in part; reaches additional insured |
| Pennsylvania | 1 employee | $50K BI + $50K PD (home improvement) | Design professionals only |
| Rhode Island | 1 employee | $500K liability | Own negligence, even in part |
| South Carolina | 4 employees | No statewide minimum | Sole negligence |
| South Dakota | Not required by law | No statewide minimum | Sole negligence |
| Tennessee | 5 employees; construction 1 | No statewide minimum | Sole negligence |
| Texas | Optional (required on public projects) | No statewide minimum | Own negligence, with exceptions; reaches additional insured |
| Utah | 1 employee | $100K/$300K (rising) | Sole negligence; reaches additional insured |
| Vermont | 1 employee | No statewide minimum | No general statute |
| Virginia | 3 employees (counting those working under you) | No statewide minimum | Sole negligence |
| Washington | 1 employee (state fund) | $200K + $50K PD, or $250K CSL | Sole negligence; shared fault limited |
| West Virginia | All employers | No statewide minimum | Sole negligence |
| Wisconsin | 3 employees, or $500 a quarter | $250K (dwelling contractors) | Own negligence, even in part |
| Wyoming | Most employers (state fund) | No statewide minimum | No general statute |
State guides
Each guide covers workers' comp, licensing insurance and indemnity in that state, plus a checklist for the contractor COIs on a project there.
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming