Insurance in Georgia

Georgia requires trades contractors to carry insurance on two separate tracks: general liability as a condition of state license issuance, and workers' compensation once the employee count crosses the statutory threshold. General liability, Chapter 43-41 licensees. The State Licensing Board for Residential and General Contractors requires a minimum of $500,000 per occurrence for general contractor, general contractor limited tier, and residential-light commercial classes, and a minimum of $300,000 per occurrence for residential-basic (Georgia Secretary of State, State Licensing Board for Residential and General Contractors). Proof of coverage must be on file with the board before a license is issued or renewed; most carriers file directly with the board. These are license floors, not market norms. General contractors and commercial customers routinely require higher limits before a subcontractor is allowed on site. Financial responsibility and surety bonds. Residential-basic and residential-light commercial applicants may satisfy Chapter 43-41 financial responsibility with a $25,000 contractor license bond. General contractor and general contractor limited tier applicants must prove financial responsibility through board-accepted means; a surety bond alone is not currently accepted at those tiers. Confirm the current financial responsibility rule on the board page before planning around a bond substitute. Chapter 43-14 trades (electrical, plumbing, conditioned air, low-voltage, utility). The State Construction Industry Licensing Board's divisions do not set a single statewide general liability floor in the statute the way Chapter 43-41 does. Check the specific division's current rules and your local county or municipal business tax certificate requirements, both of which may impose a liability minimum independent of the state board. Workers' compensation. O.C.G.A. 34-9-2 requires employers with three or more employees, regular part-time or full-time, to carry workers' compensation insurance. Corporate officers and LLC members are counted toward the three-employee threshold. There is no minimum hours-per-week rule and coverage is mandatory from day one once the threshold is crossed. The State Board of Workers' Compensation administers the program and publishes the rules for coverage, reporting, and penalties at sbwc.georgia.gov. Other coverages to carry. - Commercial auto for trucks and vans used on the job. Personal auto policies typically exclude business use. - Hired and non-owned auto for employees driving personal vehicles on company business. - Inland marine (contractor's equipment) for tools, equipment, and materials at the job site or in transit. - Pollution liability for refrigerant, solvent, and fuel handling. Relevant for HVAC and mechanical trades. - Umbrella for $1M or $2M over the underlying general liability. Required by most commercial GCs. - Builder's risk on new construction projects where the contract assigns that risk to the contractor. Shop the market annually. Georgia trade association programs through ABC, AGC, PHCC, ACCA-Georgia, and the Georgia Chapter of NECA often price group coverage better than street rates. Before you rely on a single number, verify the current general liability requirement on the board page linked below and confirm the Chapter 34-9 employee threshold against the current statute, as both the rule set and the statutory language are periodically amended.