Yes, once a job passes set dollar amounts. The Mississippi State Board of Contractors requires a state license for commercial work over $50,000 and for new homes over $50,000. Remodeling or roofing an existing home needs one over $10,000. On home projects of any size, electrical, plumbing, HVAC and mechanical subcontractors need a state license no matter how small their part of the job. These figures were checked in October 2026.
A license also comes with insurance rules. Below are the amounts, the public job rules and the paperwork a general contractor will ask for. Scott Insurance Services is an independent agency in Flowood, Mississippi, here since 1954, and we write contractors across the state.
When does a Mississippi contractor need a state license?
| Type of work | License needed when the job is over |
|---|---|
| Commercial work, general contractors and subs | $50,000 |
| New home construction | $50,000 |
| Remodeling an existing home | $10,000 |
| Roofing an existing home | $10,000 |
| Home electrical, plumbing, HVAC and mechanical subs | Any amount |
The thresholds come from the board's own fact sheet and FAQ. These figures were checked in October 2026.
Sources: Mississippi State Board of Contractors, HB 1163 fact sheet; Mississippi State Board of Contractors, Frequently asked questions (modified 2026-04-09)
How much general liability does a commercial license take?
Commercial license applicants must provide a certificate of insurance showing at least $300,000 per occurrence and $600,000 aggregate.
- $300,000 per occurrence
- $600,000 aggregate
Source: Mississippi State Board of Contractors, Frequently asked questions
The board sets no minimum amount for residential license holders. Every active license holder must still keep proof of general liability insurance. These figures were checked in October 2026.
Can a residential builder take commercial work?
How much insurance does a public job take?
At least $1,000,000 in general liability. Mississippi law sets that floor for public works contracts over $5,000 with the state. It also applies to contracts over $25,000 with a county, city or other public body. Every 2025 and 2026 bill that would have amended this section of the law died in the Legislature, so the figures stand.
How big must a public job be to need $1,000,000 in liability?
- over $5,000 A state contract
- over $25,000 A county, city or other public contract
These figures were checked in October 2026.
Source: Mississippi Code (Justia, 2025), 31-5-51
A formal public works contract also needs a performance bond and a payment bond. Each must be at least the contract amount. Under $25,000, the public owner may pay one lump sum at completion instead, and then no bond is required. These figures were checked in October 2026.
Why does a general contractor ask for my certificate of insurance?
A certificate of insurance is a one-page summary of your coverage. It lists the type of insurance, your limits and the policy dates. It shows the coverage you carried when it was issued. It is not the policy and does not change it.
Mississippi law can make a general contractor pay workers comp for a sub's crew when the sub has none. So a general contractor can ask for your certificate before work starts. A contract can also require you to add them to your policy as an additional insured. This rule was checked in October 2026.
The paperwork can be detailed. If your policy is with us, we will get the certificates out.
Questions Mississippi contractors ask about licenses and insurance
Do I need a license for a $30,000 home remodel?
Yes. Remodeling an existing home needs a state license once the job is over $10,000. These figures were checked in October 2026.
Does a residential license need general liability?
The board sets no minimum amount for residential license holders. Every active license holder must still keep proof of general liability insurance. This rule was checked in October 2026.
How big must a public job be to need $1,000,000 in liability?
A state contract over $5,000 needs it. So does a county, city or other public contract over $25,000. These figures were checked in October 2026.
Does a certificate of insurance change my policy?
No. It shows the coverage you carried when it was issued. It is not the policy and does not change it.
Talk to us before your next bid
Because we are independent, we can quote more than one insurance company. You compare the rates, with no pressure to pick. We also explain what you are signing up for before you buy. If you just want the basics for your license, we will tell you what the board asks for. We can walk you through every detail, so you know what you are paying for.
See our contractors insurance, general liability insurance and bonds pages. We also serve contractors in Flowood, Hattiesburg and Starkville.
Sources
- Mississippi State Board of Contractors, HB 1163 fact sheet
- Mississippi State Board of Contractors, Frequently asked questions
- Mississippi Code 73-59-19 and 31-3-1
- Mississippi Code 31-5-51
- Mississippi Legislature, bills touching 31-5-51 in 2026 and in 2025
- Mississippi Code 71-3-7
- Progressive Commercial, Certificate of insurance for contractors
