DC Business Insurance Requirements
Business insurance requirements in DC. What the District requires, and what your contracts require instead.
Most guidance on this blurs two different things: what the District requires by law, and what a general contractor or a DC government contract requires before they let you on the job. Both matter, the penalties are different, and several DC rules changed in 2025 and 2026, with a bigger auto change still ahead.
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What DC Requires
The requirements that actually catch DC businesses.
Workers Compensation
DC requires coverage from your first employee. If the work happens in the District, DC law can apply even when your office is in Maryland or Virginia. A general contractor is liable for a subcontractor's employees unless that subcontractor carries its own coverage, so collect certificates from every sub before they start.
Contractor Licensing
Every business needs a Basic Business License. Home improvement contractors also need a 25,000 dollar bond and liability insurance of at least 50/100/10. General contractors carry liability by license class, from 500,000 per occurrence up to 2.5 million for unlimited project size, with the DC Treasurer as additional insured.
Commercial Auto
DC requires 25/50/10 liability plus uninsured motorist coverage today, the lowest of the three jurisdictions we serve. That changes on October 1, 2027, when the minimums rise to 50/100/20. Coverage must stay continuous while a vehicle is registered in DC, and the DMV suspends the registration after a lapse.
Certificates of Insurance
The ACORD 25 states on its face that it confers no rights on the certificate holder. DC licensing adds its own rules: home improvement and general contractor licensees keep a certificate on file with DLCP, issued exactly as the business is registered. If your contract requires additional insured or primary wording, collect the endorsement rather than the certificate.
What Your Contracts Require
DC government contracts set insurance by contract type through the Office of Risk Management. Construction typically calls for general liability at one million per occurrence and two million aggregate, one million auto, employers liability at 500,000, a 10 million umbrella, and the District as additional insured. Private general contractors ask for the same shape.
Penalties for Getting It Wrong
Running without workers compensation brings a civil fine of 1,000 to 10,000 dollars, and a corporation's president, secretary and treasurer can be personally liable for benefits owed. An injured employee can also sue you directly, without your usual defenses. Operating without a required license is a Class 1 infraction starting at 2,000 dollars.
Not sure which of these apply to your business? That is the conversation to have before a renewal or a bid, not after a claim. Reach out and we will walk your operation through it.
Recently Changed
The rules are moving. Some changes have not arrived yet.
DC auto minimums rise to 50/100/20 on October 1, 2027, under a law passed in 2026. Paid Family Leave benefits were reduced for claims filed on or after October 1, 2026, while the 0.75 percent employer contribution stayed the same. The BEST Act reorganized business licensing in October 2025. If you are making a decision off something you read, check the date on it.
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Maryland, DC and Virginia
DC is not Maryland or Virginia, and the difference is expensive.
We work across all three jurisdictions, and this is where we see the most avoidable mistakes. Workers compensation starts at one employee in the District and Maryland and at three in Virginia. Auto minimums run 25/50/10 in DC, rising to 50/100/20 in October 2027, 30/60/15 in Maryland and 50/100/25 in Virginia. A business that operates across the line carries the strictest rule it touches.
Class codes that match the payroll
Whether a BOP still fits
Government and institutional contract requirements
Multi-state payroll, sorted
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FAQ
Questions we hear from business owners.
Got a different question? Call us directly: (301) 431-0000. Or email us at info@capitolbenefits.com. The fastest way to answer a real question is to ask a real person.
Not sure your DC coverage meets the requirement?
Send us your certificates and whatever the District, your landlord or your contract is asking for. We will check them against what DC actually requires, then quote the gaps.
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