Pennsylvania Contractor Compliance Guide
Complete guide to Pennsylvania contractor insurance requirements, HIC registration, and compliance regulations
Pennsylvania Contractor Insurance Requirements
Essential insurance coverage required for Pennsylvania contractors
Workers Compensation
RequiredMandatory for contractors with employees in Pennsylvania.
General Liability Insurance
RequiredRequired for most contracting work and HIC registration.
Home Improvement Bond
RequiredRequired for all registered home improvement contractors.
Commercial Auto
ConditionalRequired if using vehicles for business purposes.
Pennsylvania Contractor Registration Types
Insurance and bond requirements by registration category
Home Improvement Contractor (HIC)
Required for residential improvement work over $5,000
Work over $5,000Requirements
- $20,000 surety bond
- $50,000 general liability insurance
- Workers compensation coverage
- Registration with PA Attorney General
Bond Required
Min Insurance
Municipal Licensing
Local permits and licenses for various construction work
Varies by locationRequirements
- Local building permits
- Trade-specific licenses
- General liability insurance
- Workers compensation (if employees)
Bond Required
Min Insurance
Specialty Trade Licensing
State licenses for specific trades (electrical, plumbing, etc.)
Trade-specific workRequirements
- State trade license
- Continuing education
- General liability coverage
- Workers compensation insurance
Bond Required
Min Insurance
Home Improvement Consumer Protection Act (HICPA)
Key provisions affecting Pennsylvania home improvement contractors
Registration Requirement
All contractors performing home improvement work over $5,000 must register.
Bond Requirement
$20,000 surety bond must be maintained for duration of registration.
Insurance Requirement
Minimum $50,000 general liability insurance required.
Contract Requirements
Specific contract language and cancellation rights must be included.
Steps to Pennsylvania Compliance
Your roadmap to meeting Pennsylvania contractor requirements
Determine Registration Needs
Assess if HIC registration or other licenses are required.
Based on work type, value, and location of projects.
Secure Workers Compensation
Obtain workers comp coverage for all employees.
Required by law for any business with employees in PA.
Obtain Liability Insurance
Secure general liability coverage meeting requirements.
Minimum amounts vary by registration type and work scope.
File Surety Bond
Post required surety bond for HIC registration.
$20,000 bond required for home improvement contractors.
Important Pennsylvania Compliance Notes
HIC Registration: Required for ALL home improvement work over $5,000. Penalties include fines up to $10,000 and inability to enforce contracts.
Bond Coverage: The $20,000 surety bond protects consumers and must remain active throughout registration period.
Workers Compensation: Required for all employees including part-time workers. No exemptions for corporate officers in construction.
Contract Requirements: Specific contract language required including 3-day cancellation period for door-to-door sales.
Municipal Requirements: Local permits and licenses may have additional insurance requirements beyond state minimums.
Additional Resources
PA Attorney General
Home Improvement Contractor registration and compliance information.
Visit AG WebsiteNeed Help with Pennsylvania Compliance?
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