DC Contractor License Classes: A, B, C, G, and H Explained

Five Classes, Five Contract Ceilings

The District of Columbia divides General Contractor licenses into five classes, each capping the maximum contract value for a single project and requiring class-dependent Commercial General Liability (CGL) insurance. The class you choose determines the largest job you can legally take on — bid over your class limit, and you're operating outside your license, which can expose you to civil penalties.

Here's the full matrix:

These limits come from 17 DCMR § 3902.1. The insurance thresholds are mandatory minimums — you can carry higher coverage, but not lower.

How to Choose Your Class

Most independent contractors starting out in DC choose Class H or Class G. Here's why:

Class H is the entry point. It covers projects up to $500,000 and requires the baseline $500,000 CGL coverage. For residential remodeling, small commercial fit-outs, and repair work, this handles the majority of contracts a solo operator or small firm will take on.

Class G doubles the project ceiling to $2,000,000 with the same insurance minimums as Class C. This is the sweet spot for contractors who've outgrown small residential work but aren't bidding on major commercial projects.

Class C and B step into mid-range and large commercial territory. Class B's $1,500,000 insurance requirement significantly increases your annual premium cost, so there's no reason to carry it unless you're regularly bidding on projects above $5 million.

Class A has no contract limit. This is for firms doing the largest commercial and government construction projects in the District. The $2.5 million CGL requirement reflects that scale.

Upgrading Your Class Later

If your project scope changes, contact DLCP through BOSS about the current class-change process and prepare a Certificate of Insurance reflecting the applicable CGL coverage. Do not take a project above your current class limit.

If you need a different class, confirm the change with DLCP before relying on a different contract ceiling or lower coverage requirement.

The Insurance Details That Cause Rejections

Getting the CGL policy isn't the hard part — getting the paperwork formatted correctly is. DLCP rejects insurance submissions for these reasons more than any other:

• Wrong certificate holder text. The COI must list: "Department of Licensing and Consumer Protection, 1100 4th Street, SW, Washington, DC 20024." Listing the old DCRA name or any other agency triggers automatic rejection.
• Insurer not rated by A.M. Best. Your insurance carrier must have an A.M. Best credit rating of B+ or higher. Policies from unrated or lower-rated carriers won't be accepted.
• PO Box on the certificate. Your physical business address must appear — PO Boxes are rejected outright.
• Limits don't match the class. If you're applying for Class B but your COI shows $500,000 per occurrence, the application gets bounced.

GC Classes vs. the Home Improvement License

The class system applies only to General Contractor licenses. Home Improvement Contractors have their own separate insurance thresholds ($50,000/$100,000/$10,000) plus the additional requirements of a surety bond, background check, and salesperson designation.

If you plan to do both commercial and residential single-family work, you'll likely need both a GC class license and an HIC endorsement. The DC contractor license guide walks through how to handle dual applications.

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