Georgia Insurance, Workers' Compensation & Exam Logistics
Beyond passing the exams, a Georgia contractor must carry the right insurance and comply with workers' compensation law. This chapter reviews the general liability minimums, the workers' compensation threshold, the approved reference, and the exam format.
General liability and financial responsibility
Georgia sets minimum general liability insurance by classification: $300,000 for Residential-Basic and $500,000 for Residential-Light-Commercial and the General Contractor classification. The unlimited General Contractor tier also must demonstrate a minimum net worth of $150,000, while the GC Limited Tier qualifies on $25,000 net worth with a $1,000,000 single-contract cap. These financial-responsibility rules protect consumers who depend on the contractor's solvency.
Workers' compensation
Under the Georgia Workers' Compensation Act (O.C.G.A. §34-9-2), an employer that regularly employs three or more workers must carry workers' compensation coverage. This is a higher threshold than in some states, where the construction industry triggers coverage at a single employee, so contractors expanding a crew should track their headcount against the three-employee line.
Approved reference and exam format
The board-approved study source for the Business and Law exam is the Georgia edition of the NASCLA Contractors Guide to Business, Law, and Project Management. The exam is open book and multiple choice, drawing from licensing, estimating and bidding, business organization and financial management, tax, labor, project management and lien law, contracts, risk management, and environmental and safety. Because it is open book, candidates should practice navigating the approved guide quickly.