The short version
- Washington: register with L&I as a general contractor, post a $30,000 bond (since July 1, 2024), and carry general liability of at least $250,000 combined single limit (or $200,000 bodily injury and $50,000 property damage), with L&I as certificate holder. If the insurance lapses, the registration is automatically suspended.
- Idaho: register with the Division of Occupational and Professional Licenses (DOPL) and carry general liability of at least $300,000 single limit, including products and completed operations, plus workers comp proof or a statement of why it is not required.
- The minimums are not enough for most jobs. Owners and general contractor agreements commonly require $1 million per occurrence and $2 million aggregate, additional insured endorsements, and an umbrella.
- Uninsured subs become your problem. In Idaho, a contractor is liable for workers comp to the employees of an uninsured subcontractor working under it. At audit, insurers in both states often charge uninsured subs' costs as your payroll.
- A bond is not insurance. The registration bond protects customers and the state; it does not pay your claims, and the surety can seek repayment from you.
Washington registration requirements
| Requirement | Washington rule | Source |
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| Who must register | Anyone who, as an independent business, constructs, alters, repairs, or improves buildings or other structures attached to real estate | RCW 18.27.010, 18.27.020 |
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| General vs specialty | A general contractor uses more than one building trade or craft on a single job or permit; a specialty contractor does not | RCW 18.27.010 |
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| Bond | $30,000 for general contractors, $15,000 for specialty contractors (previously $12,000 and $6,000; increased July 1, 2024) | RCW 18.27.040 |
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| Liability insurance | $50,000 property damage, $100,000 per person and $200,000 per occurrence for bodily injury; L&I summarizes it as $200,000 public liability and $50,000 property damage, or $250,000 combined single limit | RCW 18.27.050 |
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| Workers comp and UBI | The application includes your UBI number and evidence of workers comp coverage for employees | RCW 18.27.030 |
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| Disclosure statement | Residential jobs of $1,000 or more (and commercial jobs from $1,000 to under $60,000) require a disclosure statement before work starts, or you lose lien rights | RCW 18.27.114 |
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| Working unregistered | A gross misdemeanor and an infraction, with fines of $1,200 to $10,000 for failing to register, and no right to sue to collect payment | RCW 18.27.020, .080, .340 |
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Workers comp for Washington employees comes from L&I, not private insurers, so a private stop-gap employers liability policy is usually needed alongside it. See Washington workers comp and stop-gap.
Idaho registration requirements
| Requirement | Idaho rule | Source |
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| Who must register | Anyone engaged in, or holding out as, a contractor, with DOPL | Idaho Code 54-5204 |
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| Small-job exemption | Projects under $2,000 in aggregate, but not for anyone holding out as a registered contractor | Idaho Code 54-5205 |
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| Liability insurance | General liability including products and completed operations, at least $300,000 single limit | Idaho Code 54-5210 |
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| Workers comp | A certificate of coverage, or a statement of why it is not required | Idaho Code 54-5210 |
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| Working unregistered | A misdemeanor, with no right to sue to collect and a waived right to file a lien | Idaho Code 54-5208, 54-5217 |
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| Uninsured subcontractors | A contractor is liable for workers comp to employees of an uninsured subcontractor working under it | Idaho Code 72-216 |
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Idaho workers comp is bought from private insurers or the Idaho State Insurance Fund and is required from the first employee. See Idaho workers comp.
What contracts usually require beyond the minimums
| Contract requirement | What it means | How it is handled |
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| $1 million per occurrence, $2 million aggregate | Higher general liability limits than registration requires | Your GL limits, plus an umbrella for larger jobs |
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| Additional insured | The owner or upstream contractor is covered under your policy for your work | An endorsement, not just a certificate; ongoing and completed operations forms differ |
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| Primary and noncontributory | Your policy pays before theirs | An endorsement |
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| Waiver of subrogation | Your insurer will not pursue them after paying a claim | An endorsement on GL, auto, and workers comp or stop-gap |
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| Per project aggregate | Each job gets its own aggregate limit | An endorsement that keeps one claim from using up the year's limit |
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| Umbrella | Extra limits over GL, auto, and employers liability | A commercial umbrella that schedules each underlying policy |
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The coverage program for a general contractor
- General liability with products and completed operations, since claims often arrive months or years after a job ends. See general liability.
- Workers comp: L&I plus stop-gap in Washington; a private or State Insurance Fund policy in Idaho.
- Commercial umbrella sized to your largest contracts.
- Tools and equipment (inland marine) for gear on job sites and in trucks. See tools, equipment, and business income.
- Commercial auto for trucks titled to the business, and hired and non-owned auto for employees' vehicles.
- Builder's risk for projects under construction, when the contract puts it on you.
- Cyber, if you take deposits or progress payments by wire. Fake payment instructions are a common contractor loss; see wire fraud coverage.
Where general contractors get caught
| Gap | What happens | Fix |
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| Uninsured subcontractors | The audit adds their costs to your payroll, and their injured workers may claim against you | Collect current certificates for GL and workers comp before every sub starts |
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| Additional insured on a certificate only | The owner is named on paper but not on the policy | Confirm the endorsement is actually attached |
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| Completed operations limits | A claim from a finished job draws on a limit you have already used | Check the products-completed operations aggregate |
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| Residential exclusions | Some GL policies exclude certain residential or condo work | Match the policy to the work you actually do |
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| Lapse at renewal | In Washington, a lapse automatically suspends your registration | Renew early; your insurer notifies L&I |
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Sources
This page is general information. Registration rules and amounts were checked against the statutes in October 2026; confirm current requirements with L&I or DOPL before you apply.