Contractor license and bond requirements, state by state.
Licensing, bond amounts, and insurance requirements change at every state line. This is a sourced reference for the eleven western states we serve, drawn from each state board. It is a starting point, not legal advice: confirm the current figure with the board before you rely on it.
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License, bond, and insurance requirements by state
Each state name links to its licensing authority. Where a requirement varies by residential, commercial, or license class, the range is shown. Verify the current figure with the board, since these change.
| State | State license or registration | License bond | Liability insurance to license | Workers comp to license | Renewal |
|---|---|---|---|---|---|
| Oregon | Yes, state license (Construction Contractors Board) | Res. general $25,000; res. specialty $20,000; comm. general L1 $80,000 / L2 $25,000; comm. specialty L1 $55,000 | Yes. Res. general $500,000; comm. general L1 $2M / L2 $1M; comm. specialty L1 $1M | Yes, if you have employees | 2 years |
| Washington | Yes, state registration (Labor & Industries) | General $30,000; specialty $15,000 | Yes. $200,000 public liability + $50,000 property damage (or $250,000 combined) | Yes, through the L&I state fund for employers | 2 years |
| Idaho | Yes, state registration (DOPL Contractors Board) | None for general registration (electrical, plumbing, HVAC specialties carry their own) | Yes. At least $300,000 single limit | Yes, certificate or written statement | Moving to 2 years (2025) |
| Utah | Yes, state license (Div. of Occupational & Professional Licensing) | None fixed; required only at the Division's discretion | Yes. Specialty $1M per incident / $2M aggregate; general higher | Yes, certificate with DOPL listed | 2 years |
| Nevada | Yes, state license (State Contractors Board) | $1,000 to $500,000, set by license class, monetary limit, and financials | Not a fixed minimum to license | Yes, proof of industrial insurance or a signed exemption | 2 years |
| Arizona | Yes, state license (Registrar of Contractors) | $4,250 to $100,000 by classification and volume; residential adds a Recovery Fund assessment | No, the Registrar does not require it to license | Yes, if you have employees | 2 years |
| Montana | No state license. Construction Contractor Registration for firms with employees | None | No | Yes, registration confirms workers comp for employers | Annual (registration) |
| Colorado | No state general license (local); state licenses electricians and plumbers | Set locally | Set locally | State workers comp law applies to employers | Varies by jurisdiction |
| Texas | No state general license (local); specialty trades via Dept. of Licensing & Regulation | None at state level for general contractors | None at state level for general contractors | Not mandatory for private employers under Texas law | Varies (state trades ~1 year) |
| New Mexico | Yes, state license (Construction Industries Division) | $10,000 | Not a fixed minimum in rule | Yes, required for licensed entities | 2 years |
| California | Yes, state license (Contractors State License Board) | $25,000 contractor bond | Not required for sole owners or corporations; LLCs carry $1M | Yes, required of all licensees as of January 1, 2026 | 2 years |
Sources: each state's licensing authority, linked above. Nevada's board publishes at nvcontractorsboard.com. Figures reflect the boards' published requirements as of July 2026 and change often, so confirm before relying on them. This is general information, not legal advice.
The pattern across the West
Three groups emerge. The license states, Oregon, California, Utah, Nevada, Arizona, and New Mexico, gate the license on a bond and usually insurance, so the paperwork is front-loaded and specific. The registration states, Washington and Idaho, are lighter but still require a bond or insurance and tie you to the state workers comp system. The local-rule states, Montana, Colorado, and Texas, have no state general-contractor license, so the real requirements live in city and county ordinances and in the contracts you sign, even though electrical, plumbing, and HVAC are licensed at the state level in all three.
Where the requirement becomes the opening
The states that require a bond and insurance are where a job stalls if a number is wrong: a $25,000 California bond, an $80,000 Oregon commercial general bond, a $300,000 Idaho liability minimum. Getting the exact figure and the exact endorsement right is the difference between a license that issues and one that sits. We place the bond and confirm the insurance matches what the board and your contracts require.
A bond is not insurance
Every figure in the bond column is a guarantee to a third party, not protection for you. If the surety pays a claim, you repay the surety. That is why sureties underwrite your finances, and why a license bond never replaces general liability or workers compensation. Most states that require a bond also require proof of insurance, and the two are separate obligations.
Verify with the board
Requirements change, sometimes mid-year. Oregon raised every bond by $5,000 effective January 2024, and California extended the workers comp requirement to all licensees in January 2026. Treat this reference as a starting point, confirm the current figure with your state board, and make sure your bond and insurance line up with both the license and the contracts you are signing.
Reviewed for insurance accuracy by Richard Sweet, Vantage Point Risk. Last reviewed July 16, 2026. How we review this.
Common questions.
Which of my states require a contractor license?
How much is a contractor license bond?
Does a license bond replace insurance?
Do these requirements change?
Make sure your bond and insurance match the requirement
A license stalls when a bond amount or an insurance limit is wrong. We confirm both against your state and your contracts.
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