Georgia small business insurance requirements: workers' compensation at three employees, 25/50/25 auto limits and contractor liability minimums

Georgia: what the state requires of a small business

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In Georgia, a business that regularly has three or more employees in the state, counting part-time and seasonal workers and corporate officers even when they exempt themselves, must carry workers' compensation; vehicles need at least $25,000 per person, $50,000 per accident and $25,000 property damage liability; and licensed residential-basic contractors must show $300,000 of general liability, with $500,000 for residential-light commercial and general contractors.

Reviewed by CoverMatch licensed agents, Licensed property & casualty agents · Reviewed Oct 11, 2026 Updated Oct 30, 2026

Georgia rules with sources
Topic	The rule in Georgia	Source
Workers' compensation	Employers that regularly have three or more employees in the same business in Georgia, full-time, part-time or seasonal, are subject to the Act and must insure or qualify to self-insure. Corporate officers and LLC members count toward the three even when they exempt themselves from coverage; sole proprietors and partners are not required to cover themselves but may elect to.	O.C.G.A. § 34-9-2 and § 34-9-2.1; State Board of Workers' Compensation — Coverage verification and employer information
Exempt employers	Railroad carriers, farm labor and domestic servants are outside the Act, as are businesses with fewer than three regular employees unless they elect coverage; a business whose headcount only briefly crosses three has been held subject to the Act.	O.C.G.A. § 34-9-2(a); State Board of Workers' Compensation — Employer pamphlet
Auto liability minimums	Bodily injury $25,000 per person / $50,000 per accident and property damage $25,000; liability is the only coverage Georgia requires, and insurers report coverage electronically to the state's database.	O.C.G.A. § 33-7-11 and § 40-6-10; Georgia Department of Revenue — Insurance requirements
Licensed contractors	Residential-basic contractors must maintain general liability of at least $300,000 per occurrence; residential-light commercial, general contractor and general contractor limited-tier licensees at least $500,000 per occurrence, with proof of workers' compensation; the certificate stays on file with the board and is a condition of renewal.	O.C.G.A. § 43-41-6; Ga. Comp. R. & Regs. 553-4-.02 and 553-3-.01; State Licensing Board for Residential and General Contractors

Topic

The rule in Georgia

Source

Workers' compensation

Employers that regularly have three or more employees in the same business in Georgia, full-time, part-time or seasonal, are subject to the Act and must insure or qualify to self-insure. Corporate officers and LLC members count toward the three even when they exempt themselves from coverage; sole proprietors and partners are not required to cover themselves but may elect to.

O.C.G.A. § 34-9-2 and § 34-9-2.1; State Board of Workers' Compensation — Coverage verification and employer information

Exempt employers

Railroad carriers, farm labor and domestic servants are outside the Act, as are businesses with fewer than three regular employees unless they elect coverage; a business whose headcount only briefly crosses three has been held subject to the Act.

O.C.G.A. § 34-9-2(a); State Board of Workers' Compensation — Employer pamphlet

Auto liability minimums

Bodily injury $25,000 per person / $50,000 per accident and property damage $25,000; liability is the only coverage Georgia requires, and insurers report coverage electronically to the state's database.

O.C.G.A. § 33-7-11 and § 40-6-10; Georgia Department of Revenue — Insurance requirements

Licensed contractors

Residential-basic contractors must maintain general liability of at least $300,000 per occurrence; residential-light commercial, general contractor and general contractor limited-tier licensees at least $500,000 per occurrence, with proof of workers' compensation; the certificate stays on file with the board and is a condition of renewal.

O.C.G.A. § 43-41-6; Ga. Comp. R. & Regs. 553-4-.02 and 553-3-.01; State Licensing Board for Residential and General Contractors

Workers' compensation in Georgia

Georgia's threshold is three regular employees in the same business, counting part-time and seasonal staff, and counting officers and LLC members even when they waive their own benefits. Smaller employers may elect in, and many do because general contractors and clients ask for a policy regardless of headcount. The State Board enforces the Act, verifies coverage online, and assesses penalties on uninsured employers after an injury.

Auto liability in Georgia

The state minimum is 25/50/25 and liability is the only mandatory coverage. Insurers report coverage to the state database, so a lapse surfaces at registration renewal. Business vehicles are usually written at a $1M combined single limit, which is what delivery platforms, general contractors and commercial leases require.

Contractors in Georgia

Residential and general contractors are licensed by the State Licensing Board under the Secretary of State. Each license class carries a general liability minimum, $300,000 for residential-basic and $500,000 for the others, proof of workers' compensation, a net worth or bond showing, and the insurance certificate is a renewal condition. Specialty trades such as electrical, plumbing and conditioned air are licensed separately with their own rules.

How CoverMatch uses these rules

A Georgia business in the wallet is checked against these rules: workers' compensation once three regular employees are reported, auto limits on scheduled vehicles, and the general liability floor for licensed contractor classes. Each rule links to its source, and a licensed agent reviews this page before it publishes and whenever the rules change.

Sources

Questions people actually ask

Do the owners count toward Georgia's three-employee test?

Corporate officers and LLC members do, even if they exempt themselves from benefits. Sole proprietors and partners do not count and are not required to cover themselves.

My Georgia landscaping crew is two people most of the year and four in spring. Am I covered by the Act?

Probably yes. Georgia courts have treated a business that reaches three or more employees even briefly as subject to the Act, so most seasonal employers carry a policy all year.

Does a Georgia general contractor license require insurance?

Yes. The board requires general liability of $300,000 or $500,000 per occurrence depending on the license class, plus workers' compensation evidence, and the certificate must stay current for renewal.

By business type in Georgia