Garage Door Business Insurance Requirements by State (2025)

Starting a garage door business? Here’s something that catches most new contractors off guard: insurance requirements aren’t one-size-fits-all across America.

Maryland demands $500,000 in general liability coverage. Connecticut requires just $20,000. Texas? Workers’ compensation is actually optional for most private employers.

This isn’t about best practices or what your insurance agent recommends - this is about what your state legally mandates before you can operate. The difference matters because inadequate coverage can shut down your business before your first installation.

Let’s break down exactly what’s required in your state, backed by official government sources.

Do garage door contractors need insurance? Most states require workers’ compensation insurance once you hire employees (thresholds vary from 1-5 employees). Approximately 20 states mandate general liability insurance for contractor licensing, with minimums ranging from $20,000 (Connecticut) to $500,000 (Maryland, New Jersey). Commercial auto insurance is required in all states if using vehicles for business purposes.

The Big Picture: Three Types of Required Insurance

Before we dive state-by-state, understand that garage door contractors typically face three categories of state-mandated insurance:

Workers’ Compensation Insurance

Required in: All 50 states (with varying employee thresholds)

Every state mandates workers’ comp, but the rules differ dramatically. California requires coverage the moment you hire your first employee. Alabama kicks in at 5 employees. Texas treats it as optional for most private employers (though you’ll need it for government contracts).

Common thresholds:

• 1 employee: California, Michigan, New York
• 3 employees: Georgia, Kentucky, North Carolina, Virginia
• 4 employees: Florida, South Carolina
• 5 employees: Alabama

The penalty for skipping workers’ comp? In most states, operating without required coverage is a criminal offense - not just a fine, but potential jail time for business owners.

General Liability Insurance

Required in: Approximately 20 states mandate it; others strongly recommend it

This is where requirements get interesting. States that require general liability coverage vary wildly in minimum amounts:

Lowest requirements:

• Connecticut: $20,000
• Alaska: $20,000 property damage (handyman contractors)

Mid-range requirements:

• Louisiana: $100,000 (residential contractors)
• Maine: $100,000 (residential contractors)
• Utah: $100,000 per incident / $300,000 total
• Georgia: $300,000 per occurrence

Highest requirements:

• Maryland: $500,000 (increased from $50,000 in June 2024)
• New Jersey: $500,000 per occurrence
• Rhode Island: $500,000 (general contractor registration)

Some states like Arizona explicitly state they do NOT require general liability - only workers’ compensation. Others leave it to local municipalities to set requirements.

Surety Bonds

Required in: Approximately 25 states for contractor licensing

Bonds aren’t insurance - they’re a guarantee that you’ll complete work as promised. If you fail to perform, the bond compensates your customer.

Common bond amounts:

• $5,000-$10,000: Arkansas ($10K), Hawaii (min $5K), New Mexico ($10K)
• $15,000-$25,000: California ($25K), Iowa ($25K), Alaska ($10K specialty)
• $100,000+: Florida ($100K for financially responsible officers), Nevada (up to $500K based on license type)

Here’s what confuses contractors: in many states, you can substitute a bond for net worth requirements. Georgia, for example, requires general contractors to show $150,000 net worth OR post a bond instead.

State-by-State Insurance Requirements (All 50 States)

Reading this table:

• WC Threshold = Workers’ Compensation employee trigger
• GL Required = General Liability Insurance mandated (Yes/No/Amount)
• Bond Required = Surety bond mandated (Yes/No/Amount)
• Source = Official government documentation link

State	WC Threshold	GL Required	Bond Required	Official Source
Alabama	5+ employees	Varies by license	Some trades ($10K roofers)	Home Builders Licensure Board
Alaska	If employees	Yes - $20K min (handyman)	Yes - $5K-$25K	Commerce Dept Bond & Insurance
Arizona	If employees	NO (WC only)	Yes - $4,250-$100K	Registrar of Contractors
Arkansas	3+ employees	Not mandated	Yes - $10K commercial	Contractors Licensing Board
California	If employees	Not mandated	Yes - $25K	CSLB Bond Requirements
Colorado	Required	Local regulation	Public works only	Construction & Bond Program
Connecticut	Required	Yes - $20K minimum	Conditional	Home Improvement Applications
Delaware	Required	Not mandated	Conditional	Contractor Registration Act
Florida	4+ employees	Varies by license	Yes - $100K (FRO)	Construction Industry FAQs
Georgia	3+ employees	Yes - $300K residential	Net worth alt.	Commercial General Contractors
Hawaii	If employees	Yes (amount TBD)	Yes - Min $5K	Contractor Insurance Requirements
Idaho	Required	Local regulation	N/A	No statewide licensing
Illinois	Required	Roofing only	Roofing - $10K	Roofing Contractor - IDFPR
Indiana	Required	Varies locally	Varies locally	West Lafayette Bonding
Iowa	If employees	Plumbing/mechanical - $500K	Yes - $25K general	Contractor Registration
Kansas	Required	Local regulation	N/A	Kansas Business Center
Kentucky	Required	Trade-specific	Public works	Performance Bonds - KRS 45A.435
Louisiana	Required	Yes - $100K residential	Alt. to net worth	LSLBC Insurance
Maine	Required	Yes - $100K residential	Public works	Public Works Surety Bond
Maryland	Required	Yes - $500K	Conditional	MHIC License Requirements
Massachusetts	If employees	Yes (“adequate”)	N/A	HIC Registration
Michigan	1+ at 35hrs OR 3+	Trade-specific	Trade-specific	LARA
Minnesota	Required	Yes (certificate req.)	Varies by trade	Residential Contractor Licensing
Mississippi	Required	Yes (residential)	Not mandated	MSBOC
Missouri	Required	Local regulation	Public works	RSMo Section 107.170
Montana	Required	Local regulation	N/A	No statewide licensing
Nebraska	If employees	Not mandated	Not required	Contractor Registration
Nevada	If employees	NO (WC only)	Yes - $1K-$500K	NSCB License Requirements
New Hampshire	Required	Local regulation	N/A	OPLC
New Jersey	Required	Yes - $500K	Not universal	Home Improvement Contractor
New Mexico	Required	Not mandated	Yes - $10K	Construction Industries License
New York	1+ employee	Varies locally	N/A	Workers’ Compensation Insurance
North Carolina	3+ employees	Not mandated	Public works	NCLBGC
North Dakota	Required	Yes (certificate)	Not mandated	Contractors - ND SOS
Ohio	Required	Local regulation	N/A	Ohio BWC
Oklahoma	Required	Trade-specific	Trade-specific	Construction Industries Board
Oregon	If employees	Yes	Yes (varies)	CCB Licensing
Pennsylvania	Required	Yes (minimum)	Not mandated	Contractor Licensing
Rhode Island	If employees	Yes - $500K	Some trades ($20K)	General Contractor Registration
South Carolina	4+ employees	Trade-specific	Yes (varies)	SC Contractors’ Licensing Board
South Dakota	Required	Electrical only	Electrical only	Electrical Commission
Tennessee	Required	Yes (based on limit)	Yes - $10K-$1M	Application Requirements
Texas	Optional private	Trade-specific	N/A	Electrical Contractor License
Utah	Required	Yes - $100K/$300K	Not mandated	DOPL Contracting
Vermont	Required	Local regulation	N/A	No statewide licensing
Virginia	3+ employees	Specific categories	Class A - $50K	Board for Contractors
Washington	Required	Yes - $250K	Yes - $15K-$30K	Register as Contractor
West Virginia	Required	Recommended	Wage bond	Contractor Licensing Board
Wisconsin	Required	Yes OR bond	OR liability	Dwelling Contractor - DSPS
Wyoming	Required	Local regulation	N/A	Excise Tax - Registration

Special Cases Worth Understanding

Texas: The Workers’ Comp Exception

Texas stands alone as the only state where workers’ compensation is truly optional for most private employers. Here’s the catch: if you opt out, you lose the liability protections workers’ comp provides. Injured employees can sue you directly, and you can’t claim common law defenses like “employee negligence” or “assumed risk.”

Government contracts are different - if you’re bidding on city, county, state, or federal work in Texas, workers’ comp becomes mandatory.

Texas trade-specific insurance requirements:

• Electrical contractors: $300K per occurrence, $600K aggregate
• Air conditioning/refrigeration: General liability required (amount unspecified)

States with No Statewide Contractor Licensing

Eleven states don’t have statewide general contractor licensing, meaning insurance requirements default to local municipalities:

• Colorado
• Idaho
• Illinois (except roofing)
• Indiana
• Kansas
• Missouri
• Montana
• New Hampshire
• Ohio
• Vermont
• Wyoming

If you operate in these states, call your city or county building department. Requirements can range from nothing at all to stricter standards than neighboring states impose.

Maryland’s 2024 Insurance Increase

Maryland made headlines in June 2024 by increasing general liability requirements from $50,000 to $500,000 - a tenfold jump. This puts Maryland in the “highest requirement” category alongside New Jersey and Rhode Island.

The Maryland Home Improvement Commission justified the increase as necessary to protect homeowners from underinsured contractors who couldn’t cover property damage or injuries.

States That Explicitly Don’t Require General Liability

Some states clarify in official documentation that they do NOT require general liability insurance:

• Arizona: “With the exception of workman’s compensation insurance, the ROC does not require an entity to possess insurance to be licensed.”
• Nevada: General liability not required by Nevada State Contractors Board (bond and workers’ comp only)

This doesn’t mean you shouldn’t carry it - it means the state won’t check for it during licensing.

Workers’ Compensation Thresholds: The Complete Breakdown

Understanding when workers’ comp kicks in saves you from expensive surprises. Here’s every state threshold:

1 Employee = Immediate Coverage Required

• California
• Michigan (1+ at 35+ hours/week OR 3+)
• New York

3 Employees = Coverage Triggered

• Arkansas
• Georgia
• Kentucky
• North Carolina
• Virginia

4 Employees = Coverage Triggered

• Florida
• South Carolina

5 Employees = Coverage Triggered

• Alabama

”If Employees” = Generally Means 1+

Most states use language like “if employees” or “required by state law,” which typically means coverage starts with your first hire. Check your state’s Department of Labor or Industrial Commission for specifics.

Texas Exception

As discussed, Texas makes workers’ comp optional for most private employers - but mandatory for:

• Government contracts (city, county, state, federal)
• Public works projects
• Some high-risk industries

Understanding Surety Bonds vs. Insurance

Contractors often confuse surety bonds with insurance. Here’s the critical difference:

Insurance protects YOU: If you cause property damage or someone gets injured, your general liability insurance pays the claim.

Bonds protect YOUR CUSTOMERS: If you fail to complete work, don’t pay subcontractors, or violate contract terms, the bond compensates the customer.

How bonds work:

1. Customer files claim against your bond
2. Surety company investigates the claim
3. If valid, surety pays the customer
4. You reimburse the surety company for the full amount plus fees

Think of a bond as a line of credit, not insurance. You’re personally liable for any claims paid out.

States with Highest Bond Requirements

• Nevada: Up to $500,000 based on license type and monetary limit
• Florida: $100,000 for Financially Responsible Officers (or 660+ credit score)
• Arizona: $4,250 to $100,000 depending on classification and annual volume
• Tennessee: $500,000-$1,000,000 for general/commercial contractors
• California: $25,000 (increased January 1, 2023 via SB 607)

Alternatives to Bonds

Some states allow alternatives:

• Cash deposits: Arizona, Nevada
• Net worth requirements: Georgia ($150,000), Louisiana ($10,000)
• Credit score substitution: Florida (660+ score replaces $100K bond)

What Garage Door Contractors Actually Need

State minimums often fall short of protecting your business. Here’s what the garage door industry typically carries:

Recommended Coverage (Industry Best Practice)

General Liability Insurance:

• Minimum: $1,000,000 per occurrence / $2,000,000 aggregate
• Why: A single garage door installation involves expensive homes, cars in garages, and heavy equipment. $20,000 Connecticut minimum won’t cover a luxury SUV crushed by a falling door.

Workers’ Compensation:

• As required by your state
• Why: Medical costs for pinched fingers, back injuries from lifting doors, or falls from ladders add up fast. Average workers’ comp claim in construction: $41,000.

Commercial Auto Insurance:

• Minimum: $1,000,000 combined single limit
• Why: You’re hauling heavy garage doors and equipment. Rear-ending someone with a 16-foot door on your truck creates liability state minimums won’t cover.

Tools & Equipment Coverage:

• Coverage: Replacement value of all tools and inventory
• Why: A single truck break-in can cost $15,000+ in specialized tools and garage door openers.

Umbrella/Excess Liability:

• Additional: $1,000,000-$2,000,000
• Why: Provides coverage above your primary policies when claims exceed limits.

What You Can Skip (Usually)

Professional Liability (E&O): Garage door installation is skilled trades work, not professional services. E&O covers architects, engineers, and consultants - not installers.

Cyber Liability: Unless you’re storing thousands of customer credit cards, cyber insurance is overkill for most garage door companies.

How to Verify Your State’s Current Requirements

Government websites update regularly. Here’s how to confirm requirements before you buy coverage:

Step 1: Identify Your Licensing Board

Search: “[Your State] contractor licensing board” or “[Your State] home improvement contractor”

Step 2: Look for These Specific Pages

• “License Application Requirements”
• “Insurance and Bonding Requirements”
• “Contractor Bond Information”
• “Workers’ Compensation Requirements”

Step 3: Download Official Forms

Many states publish insurance certificate templates showing exact coverage amounts and required certificate holders.

Step 4: Call the Licensing Board

Phone verification catches recent changes not yet updated on websites. Ask specifically:

• “What insurance is required for a garage door contractor?”
• “What’s the minimum general liability amount?”
• “Who must be listed as certificate holder?”
• “What’s the workers’ comp employee threshold?”

Step 5: Check Local Requirements

Even in states with licensing, cities and counties can add requirements. Call your local building department: “I’m applying for a garage door contractor license - what insurance do you require?”

Common Compliance Mistakes (That Can Shut You Down)

Mistake #1: Letting Coverage Lapse

Most states require continuous coverage with no gaps. A single day without insurance can:

• Automatically suspend your license (Hawaii gives 60 days to reinstate)
• Require reapplication as a new contractor
• Show up on license verification searches
• Disqualify you from bidding on jobs

Mistake #2: Wrong Certificate Holder

Your insurance certificate must list specific entities as certificate holders:

Examples from state requirements:

• Kentucky: “Department of Housing, Buildings and Construction”
• Minnesota: “Department of Labor and Industry (DLI)”
• Oregon: “Oregon Construction Contractors Board (CCB)”
• Rhode Island: “Rhode Island Contractors’ Registration and Licensing Board (CRLB)”

Insurance companies make mistakes. Verify the certificate holder matches exactly what your state requires.

Mistake #3: Assuming Your State Doesn’t Require Insurance

“My state doesn’t have contractor licensing” doesn’t mean “I don’t need insurance.”

• Your city might require it
• Your county might require it
• General contractors hiring you will require it
• Commercial property owners will require it
• Home improvement contracts often require proof of insurance

Mistake #4: Using Personal Auto for Business

That “commercial use” checkbox on your auto insurance application matters. Using personal auto insurance while hauling garage doors and tools to job sites can void your coverage entirely.

When you file a claim, insurance companies investigate. If they discover you were using the vehicle for business with a personal policy, they’ll deny the claim and potentially rescind your entire policy.

Mistake #5: Skipping Workers’ Comp for “Subcontractors”

Several states have laws making general contractors liable for workers’ comp even when workers are classified as independent contractors:

• New York: Construction Industry Fair Play Act (2010) presumes workers are employees
• North Carolina: Section 97-19 makes principal contractors liable for subcontractor workers’ comp
• California: Strict enforcement of employee vs. contractor classification

“He’s a 1099 contractor” won’t protect you if your state treats construction workers as employees by default.

Frequently Asked Questions

What insurance is legally required for garage door contractors?

Legal requirements vary by state, but nearly all states mandate workers’ compensation insurance once you hire employees (thresholds range from 1 to 5 employees). Approximately 20 states also require general liability insurance ranging from $20,000 (Connecticut) to $500,000 (Maryland, New Jersey, Rhode Island). About 25 states require surety bonds for contractor licensing, typically between $5,000 and $100,000.

The only way to know for certain: check your state’s contractor licensing board official website and verify local municipal requirements with your city or county building department.

Which states have the highest insurance requirements for garage door contractors?

Highest general liability requirements:

• Maryland: $500,000 (increased June 2024)
• New Jersey: $500,000
• Rhode Island: $500,000

Highest bond requirements:

• Nevada: Up to $500,000 based on license type
• Tennessee: $500,000-$1,000,000 for general/commercial contractors
• Florida: $100,000 for Financially Responsible Officers
• Arizona: $4,250-$100,000 depending on classification

Most comprehensive insurance mandates (combination of requirements):

• Washington: $250,000 liability + $15,000-$30,000 bond + workers’ comp
• Georgia: $300,000 liability (residential) + net worth requirement
• Hawaii: General liability + workers’ comp + minimum $5,000 bond

Is workers’ compensation required in all states for garage door contractors?

Yes, all 50 states have workers’ compensation requirements - but with significant variations in when coverage becomes mandatory:

Immediate coverage (1 employee): California, Michigan, New York

3 employees: Arkansas, Georgia, Kentucky, North Carolina, Virginia

4 employees: Florida, South Carolina

5 employees: Alabama

Exception - Texas: Workers’ compensation is optional for most private employers, though required for government contracts.

Even if you’re below your state’s threshold, carrying workers’ comp protects you from direct employee lawsuits for workplace injuries.

What’s the difference between insurance and bonding for garage door contractors?

Insurance protects YOU from financial loss when you cause damage or someone gets injured. Your insurance company pays claims, and you’re not required to reimburse them.

Bonding protects YOUR CUSTOMERS when you fail to perform. If you don’t complete work, don’t pay subcontractors, or violate contract terms, the surety company pays the claim - then you must reimburse the surety company for the full amount plus fees and interest.

Think of insurance as true coverage and bonds as a guaranteed line of credit. Both serve different purposes, and many states require both.

Can I operate a garage door business without insurance if my state doesn’t require it?

Legally? Possibly, if your state and local jurisdiction have no requirements and you have no employees.

Practically? No. Here’s why:

• Most general contractors won’t hire uninsured subcontractors
• Homeowners increasingly request certificates of insurance
• You’re personally liable for all damages, injuries, and lawsuits
• Commercial property owners typically require proof of insurance
• One accident could bankrupt you and cost you your home

Even in states with no insurance requirements, the average garage door contractor carries $1-2 million in general liability coverage. State minimums protect regulators, not your business.

Hard-Earned Advice from 17+ Years in the Industry

Let me share some war stories and blunt advice from my time as a partner in a multi-city, multi-state locksmith company and helping hundreds of garage door contractors get properly verified on Google and licensed across different states.

NEVER Run a Business Without Proper Insurance (Even Where It’s “Optional”)

I need to be crystal clear about this: DO NOT run a garage door business without insurance. I don’t care if your state only “recommends” it or if you’re a solo operator with no employees.

Some places make insurance mandatory. Other places leave it optional. Either way, educate yourself on proper coverage and carry more than you think you need.

Let me paint you a picture: You’re a garage door tech. You’re working in someone’s garage installing a new door. You set down your drill on the floor while you grab the next panel. Homeowner walks into the garage to check on your progress, steps on the drill, it rolls under their foot, they slip and fall backward, crack their head on the concrete floor.

Now they’ve got a concussion, maybe worse. Emergency room visit, CT scans, neurologist appointments, maybe long-term complications. Medical bills hit $50,000 before you even know what happened. Then comes the lawsuit because their insurance company wants to subrogate, plus pain and suffering claims, lost wages if they had to take time off work.

You think you’re going to pay that out of pocket? You think your truck and tools won’t get seized in a judgment? You think your house is protected?

I’ve watched contractors lose everything - and I mean everything - because they were cheap on insurance. A $2,000 annual policy premium seems expensive until you’re facing a $200,000 judgment that wipes out your business, your savings, and your home.

Even in states where insurance is optional, the smart contractors - the ones who last - carry comprehensive coverage. General liability, workers’ comp (even for that one helper you hired “temporarily”), commercial auto, the works.

Here’s my real-world recommendation, regardless of what your state requires:

• $1 million general liability minimum (I carry $2 million)
• Workers’ comp the second you hire anyone - family members, part-timers, doesn’t matter
• Commercial auto for every vehicle touching a job site
• Tool and equipment coverage because $15,000 in stolen tools will hurt
• Umbrella policy of at least $1 million over your primary coverage

Yes, this costs money. It also costs money to lose your business, your house, and your ability to earn a living. Pick your expensive outcome.

Follow ALL State Regulations (Or Watch Your Empire Collapse)

Here’s something that keeps me up at night: I’ve seen contractors build successful businesses across multiple locations, generate real revenue, hire good people - and then watch it all collapse in a single day because they cut corners on licensing requirements.

You might get away with missing a license requirement for months or even years. But when the state catches up with you - and they will - it’s not just fines. You’re looking at potential criminal charges and deceptive practices litigation. I’m talking personal liability, not just business consequences.

One locksmith we knew operated in three states. Built up a solid business over four years. Never bothered with the proper licensing in one of those states because “nobody checks.” Until someone filed a complaint. The state attorney general went after him personally for operating without a license and deceptive trade practices. Legal fees alone cost him over $80,000 before they even got to the fines and penalties.

Don’t build your business on a foundation that can crumble overnight. Get the licenses. File the paperwork. Pay the fees. It’s boring, it’s bureaucratic, but it’s the difference between a real business and a ticking time bomb.

Beware of “Inside Guy” Vendors (It’s Horse Shit)

Over 17 years helping locksmith and garage door companies get Google verified, get Local Services Ads approved, and optimize their online presence, I’ve heard every pitch imaginable.

One of my favorites - and by “favorites” I mean it makes me want to throw my laptop across the room - is the vendor who promises they have an “inside guy” at Google who can get you approved without meeting the actual requirements.

Let me be very clear: This is absolutely horse shit.

Google doesn’t work that way. There’s no inside guy. There’s no secret backdoor. There’s no magic contact who bypasses verification requirements for a fee.

Even if some shady vendor somehow manages to get you a Google Maps listing or a Google Ads account without proper licensing and insurance documentation, here’s what happens: It gets taken down. Maybe not today, maybe not next week, but Google’s automated systems will catch it, or a competitor will report it, or a routine audit will flag it.

Then you’re not just back to square one - you’re worse off. Google now has your business flagged in their system. Getting legitimate approval becomes harder. Your domain might be blacklisted. Your business name might be marked for extra scrutiny.

I’ve seen contractors pay thousands of dollars to these “inside guy” vendors, get their listings up for a few weeks, then watch everything disappear. And when they try to contact the vendor? Ghost. No refunds, no support, no “inside guy” to fix it.

Now, I’m not against pushing limits. That’s what Optymizer is all about - we find legitimate advantages, we optimize every angle, we test boundaries to get clients better results. But there’s a massive difference between aggressive optimization and straight-up fraud.

When it comes to licensing, insurance, and regulatory compliance, my best advice is simple: Be good boys and girls.

Follow the rules. Get the proper licenses. Carry the required insurance (and then some). Submit legitimate documentation to Google. Answer verification calls honestly. Build your business on a foundation that can’t be yanked out from under you.

The contractors who make real money over the long term? They’re not the ones with the “inside guy.” They’re the ones who did it right from day one, never worried about their listings disappearing, and focused on actually serving customers instead of gaming systems.

The Real Secret to Business Success

You want to know the actual secret after 17 years in this industry? It’s not shortcuts. It’s not “inside guys.” It’s not cutting corners on insurance or licensing.

It’s doing the boring, unsexy work that protects your business and helps you dominate local search:

• File for licenses in every state you operate
• Carry comprehensive insurance that actually covers your risks
• Keep meticulous records of everything
• Renew coverage before it lapses
• Stay current on regulation changes
• Build relationships with legitimate vendors and service providers

I know this isn’t as exciting as some magic growth hack. But I’ve watched hundreds of contractors come and go. The ones who last? They’re the ones who treated their business like a real business from day one, including investing in a professional garage door website that builds trust with proper insurance credentials.

Your garage door company isn’t a side hustle. It’s not a “see what happens” experiment. If you’re going to do this, do it right. Get licensed. Get insured. Follow the rules. Then compete like hell on service, quality, and customer experience.

That’s how you build something that lasts.

Getting Started: Your Insurance Compliance Checklist

Ready to get properly insured? Follow this sequence:

Step 1: Determine your state’s garage door licensing requirements

• Visit your state contractor licensing board website
• Download application requirements document
• Note required insurance types and amounts

Step 2: Check local requirements

• Call your city/county building department
• Ask about local contractor registration
• Verify any additional insurance requirements

Step 3: Get multiple insurance quotes

• Provide accurate revenue projections
• Disclose all employees (including part-time)
• Ask about contractor-specific policies

Step 4: Verify certificate requirements

• Confirm exact certificate holder names
• Verify ACORD form requirements (some states specify format)
• Get enough certificates (state board, local jurisdiction, general contractors)

Step 5: Set coverage renewal reminders

• Calendar reminder 60 days before expiration
• Never let coverage lapse (automatic license suspension in many states)
• Keep certificate copies with license application

Step 6: Review coverage annually

• Adjust limits as revenue grows
• Add coverage as you hire employees
• Update certificates when coverage changes

The Bottom Line

Insurance requirements for garage door contractors range from virtually nothing in states with no licensing to $500,000+ in liability coverage in Maryland, New Jersey, and Rhode Island. Workers’ compensation requirements exist in all 50 states but vary in employee thresholds. About half of states require surety bonds ranging from $5,000 to $500,000.

The three takeaways that matter most:

1. State minimums rarely provide adequate protection. Connecticut’s $20,000 requirement won’t cover a single serious injury or major property damage claim. Carry what your business needs, not just what the state requires.

2. Local requirements often exceed state requirements. Even in states without licensing, cities and counties frequently mandate insurance for permits. Always check local codes.

3. Continuous coverage is non-negotiable. Letting coverage lapse - even for one day - can suspend your license, void your bonding, and disqualify you from jobs. Set renewal reminders and never let policies expire.

Start with your state’s official requirements using the table above, then add coverage until you sleep well at night. That’s the insurance portfolio your garage door business actually needs.

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Need help navigating contractor insurance requirements and licensing? We’ve helped hundreds of garage door contractors get properly licensed and insured across all 50 states with our garage door marketing services. Contact us for a compliance consultation and insurance guidance tailored to your specific location and business structure.

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