Pennsylvania Contractor Insurance Requirements
Pennsylvania requires workers' compensation for all employers with one or more employees under the Pennsylvania Workers' Compensation Act. Pennsylvania also has unique WC employer immunities from suit by employees — one of the broadest in the nation. The Pennsylvania Attorney General's Home Improvement Consumer Protection Act (HICPA) requires residential contractors to register and carry insurance. Philadelphia and Pittsburgh have active commercial construction markets with robust COI standards.
Pennsylvania COI Requirements at a Glance
The following table summarizes the minimum insurance requirements for contractors operating in Pennsylvania. Commercial property managers often require limits above state minimums.
| Coverage Type | Minimum / Status |
|---|---|
| General Liability (per occurrence) | $500,000 |
| General Liability (aggregate) | $1,000,000 |
| Workers' Compensation | Mandatory 1+ employees |
| Umbrella / Excess Liability | Commonly Required on Large Projects Common minimum: $1,000,000 |
| Additional Insured Endorsement | Commonly Required |
| Waiver of Subrogation | Commonly Required |
Coverage Notes
GL: Pennsylvania HICPA requires $50K minimum for residential contractors (very low), but commercial property managers require $1M/$2M. Philadelphia and Pittsburgh typically require $1M/$2M.
WC: 77 P.S. § 1 requires WC for all employers with 1+ employees. Pennsylvania allows employers to self-insure with state approval. Corporate officers may be excluded from coverage.
Umbrella: Required on state agency contracts and large Philadelphia and Pittsburgh commercial projects.
Additional Insured: Standard on commercial property management contracts.
Waiver of Subrogation: Standard on Pennsylvania commercial contracts.
Pennsylvania-Specific Laws & Regulations
These laws directly affect how contractor insurance requirements are structured in Pennsylvania. Property managers should be familiar with these statutes when reviewing vendor COIs.
Pennsylvania Workers' Compensation Act (77 P.S. § 1)
Mandatory WC for all employers with 1+ employees. Pennsylvania's WC system provides employers with immunity from employee injury lawsuits when WC coverage is in place.
Home Improvement Consumer Protection Act (73 P.S. § 517.1)
Requires residential contractors performing work over $500 to register and carry $50,000 minimum GL. Note: Commercial property managers should require much higher limits than the state minimum.
Pennsylvania COI Frequently Asked Questions
Common questions from property managers and contractors about insurance requirements in Pennsylvania.
Do contractors in Pennsylvania need workers' compensation?
Yes. 77 P.S. § 1 requires workers' compensation for all employers with one or more employees. Pennsylvania's WC system provides employers with immunity from employee injury lawsuits, making WC compliance both legally required and financially protective.
What are the minimum insurance requirements for Pennsylvania contractors?
Pennsylvania HICPA requires residential contractors to carry just $50,000 GL minimum — far below what commercial property managers should accept. Commercial projects in Philadelphia and Pittsburgh typically require $1M/$2M GL with workers' compensation, additional insured, and waiver of subrogation.
What is Pennsylvania HICPA and how does it affect COIs?
The Home Improvement Consumer Protection Act requires Pennsylvania residential contractors to register and carry at least $50,000 GL. However, this state minimum is extremely low. Property managers should always require higher limits ($1M/$2M) in vendor contracts regardless of the statutory minimum.
What COI standards do Philadelphia commercial property managers require?
Philadelphia commercial property managers typically require $1M/$2M GL, workers' compensation, employer's liability ($500K), additional insured (including completed operations), waiver of subrogation, and often $1M–$2M umbrella on major projects.
Track your Pennsylvania vendor compliance automatically
COIPulse verifies that every contractor COI meets Pennsylvania's requirements — automatically. Stop chasing paperwork and start managing risk.
14-day free trial · No credit card required · Grade your first COI instantly