Utah Contractor Insurance Requirements: What DOPL Requires in 2026 and What Changed on April 20

If you hold a Utah contractor license or are applying for one, there is a significant change you need to know about. Effective April 20, 2026, the Utah Division of Occupational and Professional Licensing updated its minimum general liability insurance requirements for all licensed contractors in Utah. This is not a small adjustment. It is a major change that affects every contractor classification in the state.

What Changed on April 20, 2026

Before April 20, 2026, Utah contractors were required to carry general liability insurance with minimum coverage of $100,000 per incident and $300,000 total. Effective April 20, 2026, the new DOPL minimum general liability requirements for all Utah licensed contractors are $1,000,000 per occurrence and $2,000,000 aggregate. That is a ten-times increase from the prior minimum. This applies to every contractor classification that DOPL licenses, including general contractors B100, residential and small commercial contractors R100, general engineering contractors E100, HVAC H100, electrical, plumbing, roofing, and all specialty trades.

What This Means for Your License Right Now

If your current general liability policy has limits below $1,000,000 per occurrence and $2,000,000 aggregate, you are likely out of compliance as of April 20, 2026. Pull your current declarations page and check your limits. If they do not meet the new requirements, you need to update your policy and provide an updated certificate of insurance to DOPL with the division listed as the certificate holder.

Workers Compensation in Utah: The One-Employee Rule

Utah requires employers to carry workers compensation insurance as soon as they have one or more employees. That includes part-time, full-time, and seasonal workers. Penalties for non-compliance can start at $1,000, and uninsured employers can have their business operations halted.

There is also a subcontractor rule that every general contractor needs to understand. If a subcontractor you hire does not carry their own workers compensation coverage, that subcontractor and their workers can be treated as your employees for workers compensation purposes under Utah law. Collect certificates of insurance from every subcontractor before work begins.

Workers Compensation Coverage Waiver (WCCW)

If your business has no employees, you must either provide a workers compensation certificate showing employee coverage or obtain a Workers Compensation Coverage Waiver from the Utah Labor Commission to satisfy DOPL licensing requirements. The waiver application carries a nonrefundable $50 processing fee and can be submitted online, by mail, by fax to 801-526-9628, or by email.

Surety Bond Requirements

Utah contractor licensing also requires a surety bond. General Building B100 and General Engineering contractors E100 require a $50,000 surety bond. Residential and Small Commercial contractors R100 require a $25,000 bond. All other license classifications require a $15,000 bond. For well-qualified contractors, bond premiums are commonly in the range of 1 to 3 percent of the face value annually.

Renewal Requirements

When you renew your Utah contractor license, you must provide active certificates of insurance for both your general liability coverage and your workers compensation coverage, with DOPL listed as the certificate holder on both. The renewal fee is currently $128, and continuing education requirements must also be completed to renew.

Get Help With Your Contractor Insurance

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Klinton Jones
Principal Insurance Broker
Jobsite Insure
info@jobsiteinsure.com
406-401-7220