PA Contractor License + Insurance (2026)

HICPA registration — the state baseline

Pennsylvania doesn’t issue a contractor’s license the way states like Florida or California do. Instead, the Home Improvement Consumer Protection Act (HICPA) requires residential home-improvement contractors performing more than $5,000 of work in a calendar year to register with the Pennsylvania Office of the Attorney General.

HICPA registration applies to contractors who perform any of the work HICPA defines as ‘home improvement’ — repairs, replacements, remodeling, or alterations to private residences. New construction is generally outside HICPA. Commercial work is also outside HICPA. The registration must be renewed every two years and the contractor’s registration number must appear in advertising and on every contract.

Required insurance under HICPA

HICPA requires registered contractors to maintain liability insurance with minimum limits of $50,000 in personal injury coverage and $50,000 in property damage coverage — combined or separate. Proof of coverage is part of the registration package and the OAG can request it at renewal.

$50,000 is the legal floor. It’s nowhere near the practical floor. A general contractor running a home addition will rarely write a sub onto a job with $50,000 limits. The standard expectation in the field is $1,000,000 per occurrence and $2,000,000 aggregate. We rarely write a HICPA-registered contractor at less than the standard expectation because the COI doesn’t open doors at $50,000.

Municipal licenses — Philadelphia and Pittsburgh

Pennsylvania allows municipalities to set their own contractor licensing rules on top of HICPA. Philadelphia and Pittsburgh are the two large jurisdictions where this matters most.

Philadelphia issues contractor licenses through the Department of Licenses and Inspections. The application requires proof of liability insurance with the city named as a certificate holder, plus workers’ compensation if employees are on the payroll. Specific limits are set by the L&I and they’re higher than HICPA’s floor.

Pittsburgh requires contractor registration through the Department of Permits, Licenses, and Inspections. Insurance and bond requirements vary by the type of work. Plumbing, electrical, and HVAC have separate license tracks with separate requirements.

Smaller municipalities (Bensalem, Bethlehem, Lower Merion, Upper Darby, etc.) often have their own registration overlays. We pull the requirement before quoting so the policy actually matches what gets you registered.

What general contractors expect on a sub COI

Most general contractors writing residential or light commercial work will request a certificate of insurance from any sub before letting them on site. The standard request:

• General liability — $1,000,000 per occurrence, $2,000,000 aggregate.
• Workers’ compensation — statutory limits, $1,000,000 employer’s liability.
• Commercial auto — $1,000,000 combined single limit if the sub drives owned vehicles.
• Additional insured — the GC and often the property owner named as additional insured by endorsement (CG 20 10 or similar).
• Waiver of subrogation in favor of the GC.
• Primary and non-contributory wording on the GL endorsement.

Workers’ compensation in Pennsylvania

Pennsylvania law requires workers’ compensation coverage for almost all employers with at least one employee, full-time or part-time, with very narrow exceptions. The penalties for going without are real — daily fines, criminal exposure for willful violations, and personal liability for medical bills if an employee is hurt on an uninsured job.

Sole proprietors and one-member LLCs with no employees are not required to carry workers’ comp on themselves under PA law. They can buy it as an option, and many do — partly for income protection and partly because every general contractor above them on the job will want to see it on the COI.

Bonds — what HICPA doesn’t require, but customers do

HICPA doesn’t require a surety bond for residential home-improvement work, but several situations call for one. Public-works contracts under the Pennsylvania Procurement Code require performance and payment bonds for projects above defined thresholds. Some municipalities require a license bond as part of registration. Private commercial owners on larger projects often require performance bonds as a condition of award.

Surety bonds are issued through carriers that bond Pennsylvania contractors and are priced based on the contractor’s financial statements and trade. Bid bonds and small license bonds are usually next-day. Performance bonds on larger jobs depend on the contractor’s pre-qualification with the surety.