As of April 20, 2026, the Utah Division of Professional Licensing (DOPL) requires licensed contractors to carry general liability insurance of at least $1,000,000 per occurrence and $3,000,000 aggregate — up from the old $100,000 / $300,000. That’s a 10x increase, and it applies to applications and renewals on or after that date. If you haven’t updated your policy, you could be out of compliance at your next renewal.
What exactly changed
For years, Utah’s minimum general liability requirement for licensed contractors sat at $100,000 per incident and $300,000 aggregate. DOPL has raised that floor to $1,000,000 per occurrence and $3,000,000 aggregate. The state must be listed as the certificate holder on your policy. In short: the old minimums no longer satisfy the licensing requirement.
Who this affects
Any contractor applying for a new license or renewing an existing one on or after April 20, 2026. If your renewal is coming up and your policy still shows the old $100K/$300K limits, that’s the thing to fix before you submit. (Note: DOPL’s specialty-contractor materials have shown a lower figure in places, so always confirm the current requirement directly with DOPL before you apply.)
What you need to do
- Check your current limits. Pull your certificate of insurance and look at your per-occurrence and aggregate limits.
- Update to at least $1M/$3M if you’re below it, before your application or renewal.
- Make sure DOPL is listed as the certificate holder.
- Confirm your workers’ comp (or waiver, if you have no employees) is also current — that requirement is unchanged.
- Verify the current minimum with DOPL if you have any doubt, since requirements can change.
Will this raise my premium?
Higher required limits can affect your premium, but often less than contractors fear — and an independent agency can shop carriers to soften the impact. The bigger risk isn’t the cost of compliance; it’s the cost of non-compliance: a lapsed or insufficient policy can put your license — and your ability to legally work — on the line.
Frequently asked questions
When does the new requirement take effect? Applications and renewals on or after April 20, 2026 must meet the $1M/$3M minimum.
I just renewed before the deadline — am I fine? Until your next renewal, but plan to update your limits so you’re ready. Don’t get caught short next cycle.
Does this change workers’ comp? No — workers’ comp requirements are unchanged. This is specifically about general liability limits.
How fast can I update my policy? Often quickly — we can review your current coverage and get you compliant before your deadline.
Don’t risk your license — get compliant now
If you’re not sure whether your policy meets Utah’s new $1M/$3M requirement, let’s check today. Call (801) 676-7101 or request a review, and we’ll make sure your contractors insurance keeps you licensed, legal, and protected.
Wasatch Preferred — 9133 S Monroe Plaza Way, Suite B, Sandy, UT 84070 — (801) 676-7101
This article is for general educational purposes only and is not insurance or legal advice. State requirements can change and may be applied differently to your situation — always confirm current requirements directly with Utah DOPL and a licensed insurance professional.
Official sources: Utah Division of Professional Licensing (DOPL) and the Utah Labor Commission (workers’ compensation).