What insurance is required for contractors in North Carolina?

North Carolina contractors need general liability insurance ($600,000 minimum), workers' compensation (if they have employees), and surety bonds ($20,000-$100,000) for NCLBGC licensing. Commercial auto insurance is required for business vehicles.

How much does contractor insurance cost in North Carolina?

North Carolina contractor insurance costs vary by trade and coverage limits. General liability typically ranges from $800-2,500 annually, workers' compensation from $1,200-3,500 annually, and commercial auto from $1,500-3,500 per vehicle.

Do I need a contractor license in North Carolina?

Yes, North Carolina requires contractor licensing through NCLBGC for construction projects over $30,000. Different license classes (Unlimited, Limited, Intermediate) have different project limits and requirements.

How do I verify CCA's North Carolina insurance license?

You can verify Contractors Choice Agency's North Carolina insurance license (Agency #1000034197) through the NAIC License Lookup at https://www.naic.org/lm/ or contact the North Carolina Department of Insurance.

North Carolina Contractor InsuranceGet Licensed & Insured in The Tar Heel State

Complete North Carolina contractor insurance solutions with NCLBGC compliance, competitive rates, and comprehensive coverage for all license types.

From Charlotte to Asheville, we protect contractors across all 100 counties in North Carolina.

NCLBGC Licensed & Bonded

All License Types Covered

Same-Day Certificates

Expert NC Agents

(800) 688-1984

Serving All NC

10.7M+

Population

275K+

Contractors

100

Counties

$26B+

Construction

North Carolina Contractor Insurance Guide

Quick Answers for North Carolina Contractors

License Required?

Yes, North Carolina requires contractor licensing through NCLBGC for most construction work over $30,000.

Insurance Requirements

General liability ($600K minimum), workers' compensation (if employees), and surety bond ($20K-$100K) required.

Business Formation

LLC formation in NC costs $125 filing fee. Optional registered agent service available statewide.

North Carolina Construction Industry Overview

$12.8B

Annual Construction Output

285K

Construction Workers

100

Counties Served

$30K

Minimum License Threshold

North Carolina Contractor Setup Costs

Licensing Costs

NCLBGC License Application$100

Surety Bond ($20K-$100K)$500-$2,000

Trade License Fees$50-$200

Total Licensing Costs$650-$2,300

Insurance Costs

General Liability$800-$2,500/year

Workers' Compensation$1,200-$3,500/year

Commercial Auto$1,500-$3,500/year

Total Insurance Costs$3,500-$9,500/year

Required Insurance Coverage Types

General Liability

• $600K minimum limits required
• Bodily injury protection
• Property damage coverage
• Personal & advertising injury
• Products/completed operations

Workers' Compensation

• Required if you have employees
• Medical expense coverage
• Lost wage replacement
• No sole proprietor exemption
• Strict penalties for non-compliance

Surety Bonding

• $20K-$100K license bond
• Protects consumers
• Required for license approval
• Performance bonds for projects
• Payment bonds as required

North Carolina Licensing Requirements

General Contractor License

License Classes

• Unlimited - No project limits
• Limited - Up to $500K projects
• Intermediate - Up to $75K projects

Experience Requirements

• 3+ years verifiable experience
• Trade-specific experience
• Responsible person designation

Specialty Trade Licenses

Common Trade Classifications

• Electrical Contractor
• Plumbing Contractor
• HVAC Contractor
• Roofing Contractor
• Concrete Contractor

License Requirements

• Pass trade-specific exam
• Meet experience requirements
• Maintain continuing education

North Carolina Business Formation Guide

LLC Formation Process

Choose Business Name

Check name availability with NC Secretary of State

File Articles of Organization

Submit Articles with $125 filing fee to NC Secretary of State

Obtain EIN

Apply for Federal Employer Identification Number with IRS

Operating Agreement

Draft LLC operating agreement (recommended but not required)

Entity Type Comparison

Limited Liability Company (LLC)

• Personal asset protection
• Tax flexibility
• Simple management structure
• $125 filing fee

Corporation

• Strong asset protection
• Investment opportunities
• More complex requirements
• $125 filing fee

Sole Proprietorship

• Simple and inexpensive
• No asset protection
• Personal liability exposure
• Not recommended for contractors

Major County Requirements

Mecklenburg County (Charlotte)

• Additional local permits required
• Higher insurance limits for some projects
• Specific bonding requirements
• Regular license verification

Wake County (Raleigh)

• Building permits through county
• Trade-specific requirements
• Certificate of insurance required
• Annual license renewals

Guilford County (Greensboro)

• Municipal licensing requirements
• Insurance verification process
• Bonding for larger projects
• Regular compliance checks

Essential North Carolina Resources

Government Agencies

NC Licensing Board for General Contractors

Main licensing authority for contractors

www.nclbgc.org

NC Secretary of State

Business formation and registration

www.sosnc.gov

NC Department of Labor

Safety regulations and compliance

www.labor.nc.gov

Professional Associations

Carolinas AGC

Associated General Contractors chapter

Education: Training and certification programs

Advocacy: Legislative representation

Networking: Industry connections and events

NC Home Builders Association

Residential construction professionals

Education: Industry best practices

Advocacy: Legislative representation and industry advocacy

Resources: Industry reports, legal updates, and business tools

North Carolina Contractor Licensing & Insurance Requirements

Everything you need to know about NCLBGC licensing and mandatory insurance coverage

License Types Available

General Contractor

Unlimited project value

Bond Required:$75,000

Insurance:$300,000 GL minimum

Building Contractor

Limited to specific project types

Bond Required:$50,000

Insurance:$300,000 GL minimum

Residential Building

Residential construction only

Bond Required:$25,000

Insurance:$300,000 GL minimum

Electrical Contractor

Electrical installation & repair

Bond Required:$25,000

Insurance:$300,000 GL minimum

Plumbing Contractor

Plumbing systems installation

Bond Required:$25,000

Insurance:$300,000 GL minimum

HVAC Contractor

Heating, ventilation & AC systems

Bond Required:$25,000

Insurance:$300,000 GL minimum

Licensing Application Process

Meet Experience Requirements

Demonstrate required years of experience in your trade

Complete Application

Submit NCLBGC application with all required documentation

Pass Examination

Successfully complete the trade-specific licensing exam

Obtain Insurance & Bond

Secure required general liability insurance and surety bond

Pay License Fees

Submit required licensing fees to NCLBGC

License Issued

Receive your North Carolina contractor license

Required Insurance Coverage

General Liability Insurance

Minimum $300,000 per occurrence
Required for all license types
Covers bodily injury & property damage
Must be maintained continuously

Additional Coverage

Workers' Compensation (3+ employees)
Commercial Auto Insurance
Surety Bond (varies by license)
Professional Liability (recommended)

Visit NCLBGC Official Website

North Carolina Contractor Insurance FAQs

Get answers to common questions about North Carolina contractor licensing, insurance requirements, and coverage options.

Still have questions about North Carolina contractor insurance?

Call Our North Carolina Experts: (800) 688-1984

Get Your North Carolina Contractor Insurance Quote

Expert agents ready to help with NCLBGC compliance and competitive rates

Contact Our North Carolina Specialists

(800) 688-1984

Available Monday-Friday, 8 AM - 6 PM EST

info@contractorschoiceagency.com

24/7 email support

Serving All 100 NC Counties

Charlotte, Raleigh, Greensboro, and statewide

Quick Response Time

Most quotes within 2 hours

North Carolina Coverage Areas:

• Charlotte Metro

• Raleigh-Durham

• Greensboro

• Winston-Salem

• Fayetteville

• Wilmington

• Asheville

• All Rural Areas

Get Started Today

Why Choose Us for North Carolina?

NCLBGC compliance expertise
All NC license types covered
Competitive rates statewide
Same-day certificates available

NCLBGC Licensed & Bonded Agency

North Carolina Resources

Featured North Carolina Insurance Guides

Essential insurance information specifically for North Carolina contractors

October 30, 2024•15 min read

Workers Compensation Complete Guide

Comprehensive guide to workers compensation insurance including North Carolina Industrial Commission requirements.

September 25, 2024•9 min read

Commercial Auto Insurance for Contractors

Essential commercial auto insurance coverage for contractors including North Carolina minimum requirements.

January 15, 2024•12 min read

Professional Liability Insurance for Contractors

Complete guide to professional liability insurance coverage for North Carolina contractors and construction professionals.

View All North Carolina Insurance Articles

Loading page...

Quick Answers for North Carolina Contractors

License Required?

Yes, North Carolina requires contractor licensing through NCLBGC for most construction work over $30,000.

Insurance Requirements

General liability ($600K minimum), workers' compensation (if employees), and surety bond ($20K-$100K) required.

Business Formation

LLC formation in NC costs $125 filing fee. Optional registered agent service available statewide.

Required Insurance Coverage Types

General Liability

• $600K minimum limits required
• Bodily injury protection
• Property damage coverage
• Personal & advertising injury
• Products/completed operations

Workers' Compensation

• Required if you have employees
• Medical expense coverage
• Lost wage replacement
• No sole proprietor exemption
• Strict penalties for non-compliance

Surety Bonding

• $20K-$100K license bond
• Protects consumers
• Required for license approval
• Performance bonds for projects
• Payment bonds as required

North Carolina Licensing Requirements

General Contractor License

License Classes

• Unlimited - No project limits
• Limited - Up to $500K projects
• Intermediate - Up to $75K projects

Experience Requirements

• 3+ years verifiable experience
• Trade-specific experience
• Responsible person designation

Specialty Trade Licenses

Common Trade Classifications

• Electrical Contractor
• Plumbing Contractor
• HVAC Contractor
• Roofing Contractor
• Concrete Contractor

License Requirements

• Pass trade-specific exam
• Meet experience requirements
• Maintain continuing education

North Carolina Business Formation Guide

LLC Formation Process

Choose Business Name

Check name availability with NC Secretary of State

File Articles of Organization

Submit Articles with $125 filing fee to NC Secretary of State

Obtain EIN

Apply for Federal Employer Identification Number with IRS

Operating Agreement

Draft LLC operating agreement (recommended but not required)

Entity Type Comparison

Limited Liability Company (LLC)

• Personal asset protection
• Tax flexibility
• Simple management structure
• $125 filing fee

Corporation

• Strong asset protection
• Investment opportunities
• More complex requirements
• $125 filing fee

Sole Proprietorship

• Simple and inexpensive
• No asset protection
• Personal liability exposure
• Not recommended for contractors

Major County Requirements

Mecklenburg County (Charlotte)

• Additional local permits required
• Higher insurance limits for some projects
• Specific bonding requirements
• Regular license verification

Wake County (Raleigh)

• Building permits through county
• Trade-specific requirements
• Certificate of insurance required
• Annual license renewals

Guilford County (Greensboro)

• Municipal licensing requirements
• Insurance verification process
• Bonding for larger projects
• Regular compliance checks

Essential North Carolina Resources

Government Agencies

NC Licensing Board for General Contractors

Main licensing authority for contractors

www.nclbgc.org

NC Secretary of State

Business formation and registration

www.sosnc.gov

NC Department of Labor

Safety regulations and compliance

www.labor.nc.gov

Professional Associations

Carolinas AGC

Associated General Contractors chapter

Education: Training and certification programs

Advocacy: Legislative representation

Networking: Industry connections and events

NC Home Builders Association

Residential construction professionals

Education: Industry best practices

Advocacy: Legislative representation and industry advocacy

Resources: Industry reports, legal updates, and business tools