Minimum Mandatory Requirements
The District of Columbia requires the following based on each license type:
General Contractor and Construction Manager
|
Class |
Coverage Amounts and Type |
Authority |
|---|---|---|
|
Class A - The holder of a Class A license is subject to no limitation as to the value of any single contract |
Commercial general liability (CGL) insurance of at least two and a half million dollars ($2,500,000) per occurrence (primary or umbrella) for bodily injury and property damage arising in any way from the issuance of the license. |
17 DCMR § 3902.1 (a) |
|
Class B - The holder of a Class B license is not entitled to engage in the construction of any single contract project of a value in excess of ten million dollars ($10,000,000)
|
CGL insurance of at least one and a half million dollars ($1,500,000) per occurrence (primary or umbrella) for bodily injury and property damage arising in any way from the issuance of the license. |
17 DCMR § 3902.1 (b) |
|
Class C - The holder of a Class C license is not entitled to engage in the construction of any single contract project of a value in excess of five million dollars ($5,000,000)
|
CGL insurance of at least five hundred thousand dollars ($500,000) per occurrence, one million dollars ($1,000,000) in the aggregate combined single limit for bodily injury or property damage arising in any way from the issuance of the license. |
17 DCMR § 3902.1 (c) |
|
The holder of a Class D license is not entitled to engage in the construction of any single contract project of a value in excess of two million dollars ($2,000,000)
|
Five hundred thousand dollars ($500,000) per occurrence, one million dollars ($1,000,000) in the aggregate combined single limit for bodily injury or property damage arising in any way from the issuance of the license. |
17 DCMR § 3902.1 (d) |
|
Class E - The holder of a Class E license is not entitled to engage in the construction of any single contract project of a value in excess of five hundred thousand dollars ($500,000)
|
Five hundred thousand dollars ($500,000) per occurrence for bodily injury or property damage arising in any way from the issuance of the license. |
17 DCMR § 3902.1 (e) |
Home Improvement Contractors
|
Coverage Amount and Type |
Authority |
|---|---|
|
Liability Insurance minimum of fifty thousand dollars ($50,000) for bodily injury or death of any one (1) person in any single accident, one hundred thousand dollars ($100,000) in the aggregate for more than one (1) person in any single accident, and ten thousand dollars ($10,000) property damage in any single accident for the license period.
|
16 DCMR § 803.2 |
Other Regulated Businesses
|
License |
Coverage and Type |
Authority |
|---|---|---|
|
Driving School |
For each vehicle owned, registered in the name of or controlled by the applicant, liability insurance in the amount of: (a) twenty five thousand ($25,000) for personal injury to, or death of, any one (1) person; (b) fifty thousand ($50,000) for personal injuries to, or death of, any number of persons involved in any single accident; and (c) five thousand ($5,000) for property damage in any single accident resulting from the negligence of the applicant or any agent, employee, or student of the applicant. |
18 DCMR § 906.2 |
|
Parking Facility |
Umbrella coverage minimum of two thousand ($2,000,000) for the duration of the license period. The licensee is required to give written advance notice to DCRA prior to the cancellation or lapse of the policy. |
24 DCMR § 601.1 |
|
Valet Parking |
Umbrella coverage minimum of two thousand ($2,000,000) for the duration of the license period. The licensee is required to give written advance notice to DCRA prior to the cancellation or lapse of the policy.) |
24 DCMR § 601.1 |
|
Tow Truck Business |
All-risk or public liability insurance of at least $750,000 for duration of the license. |
16 DCMR § 402.3 (g) |
|
Tow Truck Storage Lot |
Garage Keeper’s Liability Insurance of at least $50,000 for duration of the license. |
General Information and Terminology / Definitions
Commercial General Liability:
A Commercial General Liability (CGL) policy provides coverage to a business for bodily injury, personal injury, and property damage caused by your business operations, products, advertisements or completed operations. A CGL policy shields your business from the expenses of out-of-court settlements, litigation or rulings awarded by the courts, and typically covers categories of events for which you could be held responsible: bodily injury, property damage to others’ property (not your own property), personal injury and false or misleading advertising. *
There may be exclusions to coverage. For example, CGL may not cover damage to an adjoining property as result of construction activity occurring on the construction site. CGL also does not cover injuries sustained by employees; you need worker’s compensation insurance to cover injury to employees.
Umbrella Insurance: Umbrella liability insurance provides additional liability protection. It covers claims made against you that might exceed your insurance policy’s liability limits. Additionally, it may provide coverage for claims made against you that are not listed under your regular insurance policies, such as slander and libel.*
Garage Keeper’s Liability: Provides protections for vehicles you have in your possession, but do not own such as your customer’s vehicles.
All-Risks: Protects against every risk, except for those risks specifically excluded. Typical exclusions include general wear and tear, acts of war or government action, floods, earthquakes, sewer back-ups.
Homeowner’s Insurance: Protects your financial interests in your own home from loss or damage caused by a covered peril like fire or wind damage. It protects your home, covers your personnel belongings, and provides liability protection in the event you are sued for injury occurring on your property and found liable.*
There are certain types of coverage that may be excluded from your homeowner’s insurance policy. Typical exclusions include damage caused by flooding, including drain and sewer backup, earthquakes, landslides, wear and tear or neglect, and government action including war. Read your policy carefully to know what is and what is not covered.
*Source: Department of Insurance, Banking and Securities (DISB)
Consumer Complaints
The Department of Insurance, Securities and Banking (DISB), Insurance Bureau addresses consumer complaints, monitors the financial condition and marketing activities of insurers, licenses insurance companies and producers, and reviews insurance policies and rates to ensure compliance with applicable laws. If you have concerns about your insurance company, or you have a disagreement about a claim that was denied, you can file a consumer compliant with DISB. Information on how to file a consumer complaint is located on their website at: disb.dc.gov.