General contractors in North Carolina must carry the following insurance coverage to comply with state laws:
Workers' compensation insurance covers medical bills and disability benefits when an employee is injured on the job or develops an occupational illness. It's a key policy for the construction industry and related fields due to the hazards of working with heavy equipment and machinery.
Sole proprietors may not need workers' comp for their North Carolina general contractor license, but it's still a good idea to carry this coverage. Personal health insurance doesn't cover work-related injuries, so it can save you from out-of-pocket medical expenses.
If your business owns a vehicle, you must carry commercial auto insurance that meets the state's minimum requirements for auto liability insurance.
Commercial auto insurance protects business vehicles owned by your general contracting company. It covers property damage and medical bills in an accident, along with vehicle theft, weather damage, and vandalism.
General contractors may need different types of insurance depending on the work they do and their client contracts. These policies are the most popular for general contractors in North Carolina, and often provide the best coverage for their insurance needs.
General liability insurance is the foundation of a general contractor’s protection. It covers accidents that damage a client's property or cause a bodily injury, along with libel and other advertising injuries.
Contractors in North Carolina may be required to have this policy depending on the counties they work in and the type of work they do, as well as to sign a commercial lease or meet the terms of a client's contract. Adding commercial umbrella insurance can boost the coverage limits on commercial general liability insurance and other policies.
Licensed contractors who work independently or own a small company often qualify for a business owner’s policy. This policy bundles general liability coverage with commercial property insurance at a discount.
A BOP is the top policy recommended by Insureon's expert agents, as it offers protection against common liability claims and business property coverage at an affordable price.
Surety bonds guarantee reimbursement for the client if a general contractor fails to fulfill the terms of a contract or adhere to building codes. Common types of surety bonds include bid bonds, performance bonds, and payment bonds.
Builder’s risk insurance can cover fires, vandalism, equipment theft, and other damage done to a structure still under construction. Project owners may require this coverage for contractors and subcontractors, or you may be able to join their policy as an additional insured.
Depending on the counties or cities your business operates, you may be required to carry this coverage.
In North Carolina, from Raleigh to Charlotte, general contractors must be registered and licensed to work on projects worth more than $30,000. Depending on the license limitation and classification, your requirements for obtaining the license might vary.
There are three tiers of license limitations, which determine the dollar size of projects the licensee can undertake:
Additionally, there are four types of license classifications, which determine the type of project you're allowed to work on:
Licensure requirements include:
View details on the North Carolina Licensing Board for General Contractors website.
Insureon’s industry-leading technology helps general contractors in North Carolina save time and money shopping for insurance. Start a free online application to get quotes from top-rated U.S. insurance companies.
To make the application go quicker, have this information ready:
A licensed insurance agent can answer your questions and help you find the right coverage for your business. Contractors can get their certificate of insurance shortly after they apply for quotes and pay for a policy.