Oregon contractor insurance and bond requirements

Last reviewed Oct 11, 2026. General information from official state sources, not legal or insurance advice.

In Oregon, anyone paid to build, remodel or repair a home must hold a license from the Construction Contractors Board (CCB). Every CCB license comes with two financial protections for customers: a surety bond and liability insurance. The required amounts depend on the license endorsement, and were last raised on January 1, 2024.

Bond amounts by license type

Under ORS 701.081 and 701.084 (and OAR 812-003-0171), the bond amounts are:

• Residential General Contractor (RGC): $25,000
• Residential Specialty Contractor (RSC): $20,000
• Residential Limited Contractor: $15,000
• Commercial General, Level 1: $80,000. Commercial Specialty, Level 1: $55,000
• Commercial General or Specialty, Level 2: $25,000

A contractor licensed for both residential and commercial work needs a separate bond for each. The bond is capped at its face amount no matter how many years it stays in force (ORS 701.068).

Liability insurance minimums

CCB-licensed contractors must carry general liability insurance that includes products and completed operations, which covers problems that show up after a job is finished (ORS 701.073). The minimums (OAR 812-003-0221) are:

• Residential General: $500,000 per occurrence
• Residential Specialty: $300,000 per occurrence
• Residential Limited: $100,000 per occurrence
• Commercial General, Level 1: $2,000,000 aggregate. Commercial Specialty, Level 1: $1,000,000 aggregate
• Commercial General, Level 2: $1,000,000 aggregate. Commercial Specialty, Level 2: $500,000 per occurrence

The CCB must be listed as a certificate holder on the policy (OAR 812-003-0200). That's how the board finds out when coverage ends.

Workers' compensation

Oregon licenses contractors as "exempt" (no employees) or "nonexempt" (one or more employees). Nonexempt contractors must carry workers' compensation insurance or be self-insured (ORS 656.017), and must give the CCB their carrier and policy number. An exempt contractor who hires employees anyway faces penalties and license sanctions (ORS 701.035).

The CCB's license search shows whether a contractor carries workers' comp. If your contractor sends a crew, make sure the license isn't listed as "exempt".

Pre-1978 homes: the lead-safe license

Homes built before 1978 may contain lead-based paint. In 2010, the EPA authorized Oregon's CCB and Health Authority to run the federal Renovation, Repair and Painting (RRP) rule in Oregon. The CCB issues a Lead-Based Paint Renovation (LBPR) license, and only LBPR-licensed contractors may bid on or do renovation work that disturbs paint in pre-1978 homes (ORS 701.510). The rule applies when work disturbs more than 6 square feet of painted surface per room inside or 20 square feet outside, and window replacement always counts. Violations can cost up to $5,000 each.

On our Oregon contractor pages, licenses with this endorsement show a Lead-Safe Certified (EPA RRP) badge.

When a bond or insurance lapses

The CCB can suspend a license without a hearing if the contractor lacks a bond or liability insurance (ORS 701.098). A bonding company must give the CCB 30 days' notice before cancelling a bond. When insurance is cancelled or expires, the agency may send an emergency suspension notice (OAR 812-003-0180 and -0230). While a license has lapsed, the business may not work as a contractor (OAR 812-003-0300).

Contracts and your right to cancel

• Residential work over $2,000 requires a written contract (ORS 701.305).
• The contractor must give you the CCB's required consumer notices by the time you sign (ORS 701.330).
• For the first contract with a contractor, you can cancel until midnight of the next business day (ORS 701.310).

If something goes wrong

Homeowners can file a dispute with the CCB against a licensed contractor, and the bond pays amounts the board determines (ORS 701.068, 701.145). Before filing, you must send the contractor a 30-day pre-complaint notice by certified mail. For work on an existing home, the deadline is generally one year after the work was substantially completed (ORS 701.143). The CCB is clear about one thing: if you hire an unlicensed contractor, you lose the bond and the CCB's help with the dispute.

Unlicensed contractors

Working without a CCB license can bring civil penalties up to $5,000 per offense (ORS 701.992). The CCB's schedule starts at $600 for advertising or bidding without a license and $1,000 for a first unlicensed job (OAR 812-005-0800). An unlicensed contractor generally can't file a construction lien or sue to collect payment (ORS 701.131).

How to check an Oregon contractor

1. Search the business on the CCB's license search. It shows whether the license is active, the bond, proof of liability insurance, workers' comp, the lead-safe license, and complaints from the past 10 years.
2. Match the endorsement to the job: residential work needs a residential endorsement.
3. For a pre-1978 home, confirm the LBPR license.
4. Ask for a certificate of insurance and confirm it with the insurer (see how to verify a certificate of insurance).

You can also look up any actively licensed Oregon contractor on our Oregon lookup, which we check against the CCB's public data every day.