Michigancontractor insurance & bonding requirements
Updated April 2026 · Source: MI LARA Residential Builders Act 299
Minimum requirements
- General liability
- $1,000,000
- Auto liability
- $500,000
- Workers' comp
- Required for crews
Licensed general contractors in Michigancarry commercial insurance so that if a crew member gets injured on-site, a homeowner's appliance is damaged during demo, or a neighboring property suffers an impact from construction, the contractor's policy (not the homeowner's) pays the claim. AskBaily does not match homeowners to contractors below these minimums.
Residential Builder License required for projects ≥$600. No state bond — GL required.
Common questions
What insurance does a Michigan general contractor need?
A Michigan general contractor needs at minimum $1,000,000 general liability coverage plus $500,000 auto liability. Workers' compensation insurance is required for crews. Per MI LARA Residential Builders Act 299.
How much is the surety bond for Michigan contractors?
Michigan does not require a state-level surety bond for general contractors. Residential Builder License required for projects ≥$600. No state bond — GL required.
Who is the licensing authority in Michigan?
MI LARA Residential Builders Act 299 is the authority for Michigan contractor oversight. Public license lookup is available at https://www.michigan.gov/lara.
How does AskBaily verify contractors in Michigan?
AskBaily runs automated verification against MI LARA Residential Builders Act 299 before a contractor is matched to a homeowner project. The pro's license number is validated live at signup.
What happens if a contractor doesn't carry the required insurance?
Underinsured contractors are removed from the AskBaily match pool immediately. A homeowner who hires an unlicensed or underinsured contractor in Michigan can lose the right to mechanic's lien protection, may be held liable for on-site injuries, and forfeits protection under MI LARA Residential Builders Act 299. That's why AskBaily's policy is to match only verified pros.
Nearby jurisdictions
AskBaily cities in Michigan
Homeowners in these cities can chat with Baily today; matched pros must meet the requirements above.
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