# Alabama contractor insurance requirements

> What Alabama law says about workers' comp, contractor license insurance and indemnity clauses, and what to check on a contractor COI for a project there.

Reviewed Oct 28, 2026 by Forsured. Source: https://forsured.ai/coi-requirements/alabama/

## The short version

- Workers' comp required at: 5 employees; new homes 1
- License insurance minimum: No statewide minimum
- Anti-indemnity statute voids: No general statute

## Workers' comp in Alabama

Employers that regularly employ five or more people, counting corporate officers, must carry workers' comp. The five-employee floor does not apply to building new single-family detached homes: employers doing that work need coverage at any headcount.

Agency: [Alabama Department of Labor, Workers' Compensation Division](https://labor.alabama.gov/wc/insurance.aspx)

## Contractor licensing and insurance

We found no statewide general liability minimum tied to a general contractor license. Cities and counties can set their own licensing and insurance rules, so check where the project is.

## Indemnity and additional insured clauses

Alabama has no general construction anti-indemnity statute. Courts there generally enforce a clause that covers a party's own negligence only when the clause says so clearly (see Craig Constr. Co. v. Hendrix, 568 So. 2d 752 (Ala. 1990)).

## What to check on a contractor COI for a Alabama project

1. **Workers' comp.** A contractor below Alabama's threshold can legally go without it, but your project requirements can still require it. Decide what you'll accept, and get an exemption or a policy in writing. For an out-of-state contractor, confirm Alabama is listed on the workers' comp policy.
2. **General liability.** Alabama doesn't set a statewide floor for a general contractor license, so your project requirements set the bar. Compare each limit on the COI with what the contract asks for.
3. **Additional insured.** The endorsement is a separate promise from the indemnity clause, so check both. Ask for the endorsement itself, not just a box ticked on the certificate.
4. **Dates.** Every policy should run through the end of the job. A COI only shows coverage on the day it was issued, so check again at each renewal.

## Common questions

### Do contractors need workers' comp in Alabama?

Employers that regularly employ five or more people, counting corporate officers, must carry workers' comp. The five-employee floor does not apply to building new single-family detached homes: employers doing that work need coverage at any headcount.

### Does Alabama require contractors to carry general liability insurance?

We found no statewide general liability minimum tied to a general contractor license. Cities and counties can set their own licensing and insurance rules, so check where the project is.

### Can a Alabama construction contract make a contractor cover another party's negligence?

Alabama has no general construction anti-indemnity statute. Courts there generally enforce a clause that covers a party's own negligence only when the clause says so clearly (see Craig Constr. Co. v. Hendrix, 568 So. 2d 752 (Ala. 1990)).

## Sources

1. [Workers' compensation insurance requirements](https://labor.alabama.gov/wc/insurance.aspx), Alabama Department of Labor
2. [Anti-Indemnity Statutes in All 50 States (2023)](https://grsm.com/wp-content/uploads/2023/10/Anti-Indemnity-Statutes-2023.pdf), Gordon Rees Scully Mansukhani, 2023
3. [State Workers' Compensation Officials](https://www.dol.gov/agencies/owcp/wc), U.S. Department of Labor

General information, not legal advice. Confirm with the state agency, your broker or your attorney.

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