Homeowner Guide
How to Check Contractor License & Insurance
Verifying credentials is the single most important step before hiring. Here’s exactly how to check licenses, insurance, and bonds in any state.
Quick Answer
Get the license number from the contractor, search your state’s licensing board website, verify it’s active and in good standing. For insurance, ask for certificates and call the insurer directly to confirm coverage is current.
How to Verify a Contractor License
- Get the license number – Ask the contractor directly. Legitimate contractors provide this readily.
- Find your state’s lookup tool – Search “[your state] contractor license lookup” or visit the state licensing board.
- Search by license number or name – Both should match what the contractor told you.
- Check the status – Should be “Active” or “Current,” not “Expired,” “Suspended,” or “Revoked.”
- Verify the license type – Make sure it covers your type of project (general, electrical, plumbing, etc.).
- Check for complaints – Many boards show disciplinary actions and complaints.
What to Look For
| Check | Good Sign | Red Flag |
|---|---|---|
| License Status | Active, current | Expired, suspended, revoked |
| License Type | Matches your project | Wrong classification |
| Name Match | Exact match to contractor | Different name or company |
| Complaints | None or resolved | Pattern of complaints |
| Bond Status | Current and adequate | Expired or missing |
Insurance Verification
Contractors should carry at minimum:
- General Liability Insurance: $1 million minimum, protects against property damage and injuries
- Workers’ Compensation: Required in most states, covers worker injuries on your property
- Auto Insurance: For company vehicles used on your project
How to Verify Insurance
- Request a Certificate of Insurance (COI) – standard document all insured contractors can provide
- Check the dates – coverage must be current, not expired
- Verify coverage amounts – at least $1M general liability
- Call the insurance company – confirm the policy is active (certificates can be forged)
- Ask to be added as “additional insured” – provides extra protection for larger projects
Why This Matters
If an uninsured worker is injured on your property, YOU could be liable for medical bills and lost wages. If an unlicensed contractor damages your property, you have limited recourse. Five minutes of verification can save you thousands.
What About Bonds?
Contractor bonds provide financial protection:
- License bonds: Required by many states, covers damages from license violations
- Performance bonds: Guarantees project completion (usually large commercial projects)
- Payment bonds: Ensures subcontractors and suppliers get paid
State Requirements Vary
Some states require all contractors to be licensed (California, Arizona). Others only license specific trades. Some have no licensing requirements at all. Know your state’s rules before assuming a contractor is legitimate.
States Without Statewide Licensing
In states without statewide contractor licensing, check:
- City or county licenses – many localities require them
- Trade-specific licenses – electricians and plumbers usually need state licenses
- Business registration – verify they’re a registered business
- Insurance – even more important without licensing requirements
Questions to Ask About Credentials
- What is your contractor’s license number?
- Can you provide a certificate of insurance?
- Do you carry workers’ compensation?
- Are you bonded? What’s the bond amount?
- Who should I call to verify your coverage?
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