The 3-employee threshold
Every license class rule requires "satisfactory proof of workers' compensation insurance as required by the laws of this state." That sends you to the statute. O.C.G.A. 34-9-2(a)(2) excludes employers with regularly less than three employees in the same business in Georgia. So coverage is required at 3 or more employees, and the Secretary of State FAQ says the same.
Traps:
- "1 or more" treats workers' comp as required for every contractor regardless of headcount. That is a listed common error.
- 5 is not the Georgia threshold.
- "More than 10" is the OSHA recordkeeping small-employer exemption (29 CFR 1904.1), not workers' comp.
Who counts
Under O.C.G.A. 34-9-2, part-time workers count and corporate officers count.
- Two full-time carpenters plus one part-time helper: 2 + 1 = 3, so coverage is required. Counting only full-timers is wrong.
- Two corporate officers who work in the business plus one laborer: 2 + 1 = 3, so the corporation must carry coverage. Excluding officers as owners is exactly the error the counting rule prevents.
License class does not set the requirement; headcount does.
Statutory employer
O.C.G.A. 34-9-8 makes a contractor liable as statutory employer for the employees of an uninsured subcontractor. A general contractor with only two employees that hires an uninsured framing sub can still be liable when a framer is hurt. Its own headcount under 3 does not protect it; relying on that is a listed common error. The exposure is a compensation liability, not merely an OSHA reporting duty.
The sole proprietor applying for a GC license
A General Contractor applicant with no employees must show general liability of not less than $500,000 (Rule 553-4-.01(4)). Workers' comp proof is required only if state law requires coverage, and O.C.G.A. 34-9-2 does not below 3 employees. Demanding a workers' comp policy regardless of headcount is the listed error. $300,000 is the Residential-Basic figure, and general liability applies to all four classes, not only residential ones.