# Pennsylvania contractor insurance requirements

> What Pennsylvania 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/pennsylvania/

## The short version

- Workers' comp required at: 1 employee
- License insurance minimum: $50K BI + $50K PD (home improvement)
- Anti-indemnity statute voids: Design professionals only

## Workers' comp in Pennsylvania

Pennsylvania employers with one or more workers, including part-time, seasonal and family employees, must carry workers' comp. Corporate officers must be included unless an approved exemption is on file.

Agency: [Pennsylvania Bureau of Workers' Compensation](https://www.pa.gov/en/agencies/dli/programs-services/workers-compensation.html)

## Contractor licensing and insurance

Pennsylvania home improvement contractors must register with the Attorney General and carry at least $50,000 in personal injury liability and $50,000 in property damage coverage.

## Indemnity and additional insured clauses

Pennsylvania's statute (68 P.S. § 491) covers clauses that indemnify design professionals for their own errors. For other construction clauses, Pennsylvania courts enforce indemnity for a party's own negligence only when the clause says so clearly.

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

1. **Workers' comp.** Nearly every contractor with employees needs it in Pennsylvania. A contractor with a crew and no workers' comp on its COI is a gap. For an out-of-state contractor, confirm Pennsylvania is listed on the workers' comp policy.
2. **General liability.** A Pennsylvania license only shows the contractor met the state's floor. Compare each limit on the COI with your project requirements, which are usually higher.
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 Pennsylvania?

Pennsylvania employers with one or more workers, including part-time, seasonal and family employees, must carry workers' comp. Corporate officers must be included unless an approved exemption is on file.

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

Pennsylvania home improvement contractors must register with the Attorney General and carry at least $50,000 in personal injury liability and $50,000 in property damage coverage.

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

Pennsylvania's statute (68 P.S. § 491) covers clauses that indemnify design professionals for their own errors. For other construction clauses, Pennsylvania courts enforce indemnity for a party's own negligence only when the clause says so clearly.

## Sources

1. [Pennsylvania workers' comp requirements](https://onpay.com/insights/workers-comp-requirements-by-state/pennsylvania/), OnPay, May 2026
2. [Contractor frequently asked questions](https://www.attorneygeneral.gov/?p=6380), Pennsylvania Office of Attorney General
3. [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
4. [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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Forsured: construction insurance compliance software. https://forsured.ai · hello@forsured.ai