Requirements
A state licensing board, a GC's contract, and a retailer's vendor panel can each ask for something different — and they're not the same kind of requirement.
When someone asks for proof of insurance, it's worth pausing on who's actually asking and why, because the answer changes what you're obligated to do. A state licensing board's requirement is law — you're not legally allowed to operate without it in that state. A GC's contract requirement is contractual — you agreed to it by signing, and it's enforceable, but it's not the same as a state mandate. A retailer's vendor panel requirement is neither law nor contract in the traditional sense — it's a condition of staying in their installer network, and they can adjust it however they want.
This is the floor, not the ceiling. States that license flooring contractors typically require proof of general liability as part of licensing or renewal, and operating without it where required isn't just a business risk, it's a legal one. See our state-by-state breakdown for what's actually required where you operate — thresholds and requirements vary more than most installers expect.
A general contractor's insurance requirement lives in your subcontract agreement, and it's usually more specific than any state minimum — particular limits, additional insured language, waiver of subrogation, primary and non-contributory wording. None of that is state law. It's what you agreed to in order to get the job, and failing to meet it is a contract breach, not a licensing violation — though the practical result (getting pulled off the job) can feel the same.
Retailer installer programs occupy an odd middle ground. Their insurance requirement isn't a law and isn't quite a traditional contract — it's a standing condition of staying on their approved installer roster, enforced through automated vendor compliance systems that can suspend your status the moment a certificate lapses. They can change the requirement without much notice, and there's rarely an appeal process beyond fixing the paperwork.
Knowing which category a requirement falls into tells you what happens if you don't meet it. Miss a state licensing requirement and you risk your ability to legally operate at all. Miss a GC's contract requirement and you risk that specific job and relationship. Miss a vendor panel requirement and you risk your standing in that program specifically. They're not interchangeable, and treating them as one undifferentiated pile of paperwork is how installers end up caught off guard by whichever one they assumed mattered least.
Rather than trying to track three separate minimums, most installers are better served carrying coverage sized to the strictest of the three they're likely to encounter — which in practice usually means matching whatever a commercial GC or a retailer vendor panel asks for, since that's typically higher than a bare state minimum. Our cost page breaks down what that level of coverage actually runs.
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FAQ
It's binding in a contractual sense — you agreed to it — but it's not law the way a state licensing requirement is. Breaching it risks the job and relationship, not your legal standing to operate.
Often yes, since it's a standing condition of program participation rather than a fixed contract term. Keeping coverage above the minimum you were originally quoted helps avoid getting caught by a change.
You're legally allowed to operate, but you can still lose the specific job or relationship for breaching contract terms. State compliance and contract compliance are separate questions.
It varies significantly by state and sometimes by project size. Check our state-by-state breakdown rather than assuming a blanket answer applies everywhere you work.
Carry coverage sized to the strictest requirement you're likely to face, typically a commercial GC or retailer vendor panel's minimum, since that usually exceeds a bare state licensing floor.
Tell us where you operate and who you work with, and we'll size coverage to the strictest requirement you're likely to face.