Two numbers, four license classes
Every Georgia residential and general contractor class must prove general liability insurance when it applies and keep it in force. There are only two minimums to learn:
- Residential-Basic: not less than $300,000 (Rule 553-3-.01(4)).
- Residential-Light Commercial: not less than $500,000 (Rules 553-3-.02(4) and .04(4)).
- General Contractor: not less than $500,000 (Rule 553-4-.01(4)).
- General Contractor Limited Tier: not less than $500,000 (Rules 553-4-.05(4) and .06(4)).
So $300,000 belongs to Residential-Basic alone. Every other class is $500,000.
The Limited Tier trap
Candidates assume the smaller Limited Tier license carries a smaller insurance figure. It does not. Rule 553-4-.05 uses the same "not less than $500,000" wording as the full General Contractor license. Limited Tier's lower figure is its $25,000 net worth, not its insurance. Likewise, do not apply $300,000 to Light Commercial just because it is a residential category; that is a listed common error.
Figures that are not insurance
The exam mixes in other dollar amounts from the same rules. Keep them in their own boxes:
- $150,000 is the General Contractor net worth, not a liability limit.
- $25,000 is the Limited Tier net worth, not a liability limit.
- $1,000,000 is the Limited Tier per-contract cap, not an insurance amount.
Per occurrence
The rule text says "not less than". The Secretary of State FAQ states the same minimums per occurrence: Residential-Basic $300k per occurrence; Light Commercial, Commercial GC and Limited Tier $500k per occurrence. They are not stated per project or as a per-employee aggregate. "Per $100 of payroll" is how workers' compensation rates are applied, not liability minimums.
Moving up a class
A Residential-Basic licensee carrying exactly $300,000 who obtains a Residential-Light Commercial license must reach $500,000 (Rules 553-3-.01(4) and 553-3-.02(4)). The increase is $500,000 − $300,000 = $200,000. The trap is answering $500,000, which is the new total, not the increase. Both classes being "residential" does not make the minimums equal.