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Complete guide to Pennsylvania contractor insurance requirements, HIC registration, and compliance regulations
Essential insurance coverage required for Pennsylvania contractors
Mandatory for contractors with employees in Pennsylvania.
Required for most contracting work and HIC registration.
Required for all registered home improvement contractors.
Required if using vehicles for business purposes.
Insurance and bond requirements by registration category
Required for residential improvement work over $5,000
Work over $5,000Local permits and licenses for various construction work
Varies by locationState licenses for specific trades (electrical, plumbing, etc.)
Trade-specific workKey provisions affecting Pennsylvania home improvement contractors
All contractors performing home improvement work over $5,000 must register.
$20,000 surety bond must be maintained for duration of registration.
Minimum $50,000 general liability insurance required.
Specific contract language and cancellation rights must be included.
Your roadmap to meeting Pennsylvania contractor requirements
Assess if HIC registration or other licenses are required.
Based on work type, value, and location of projects.
Obtain workers comp coverage for all employees.
Required by law for any business with employees in PA.
Secure general liability coverage meeting requirements.
Minimum amounts vary by registration type and work scope.
Post required surety bond for HIC registration.
$20,000 bond required for home improvement contractors.
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.
Home Improvement Contractor registration and compliance information.
Visit AG WebsiteOur Pennsylvania insurance specialists can help you navigate HIC registration and secure compliant coverage.