How to Verify a Contractor’s License & Insurance
Checking a contractor’s license and insurance takes a few minutes and can save you from a project’s worst-case scenarios: shoddy unpermitted work, a lawsuit if someone is hurt, or no recourse when a job goes wrong. It is the single highest-value bit of due diligence you can do before signing anything. This checklist shows exactly what to confirm, where to look, and how to spot the excuses that signal trouble.
The short version
- Confirm the license is current, in the contractor’s name, and valid for your type of work.
- Check it through your state or local licensing board, not just a photo of a card.
- Require general liability insurance and, if they have employees, workers’ compensation.
- Ask for a certificate of insurance sent directly from the insurer or agent.
- Treat any reluctance to share these as a serious red flag.
Step 1: Verify the license
Most states and many localities license general contractors and the specialty trades. Get the license number from the contractor and check it yourself through the official licensing board — do not rely on a laminated card or a number printed on a business card, which can be expired or borrowed. When you look it up, confirm three things: the license is active and not expired or suspended, it is held in the name of the business or person you are hiring, and it covers the type and scale of work you need done.
Step 2: Confirm the right insurance
A contractor should carry two kinds of coverage. General liability protects against damage to your property caused by the work. Workers’ compensation covers injuries to the contractor’s workers on your job — and this one matters enormously to you, because if a worker is hurt on your property and there is no coverage, you can end up exposed.
| Coverage | What it protects | Why you care |
|---|---|---|
| General liability | Property damage from the work | Pays to fix damage they cause |
| Workers’ compensation | Injuries to their workers | Keeps injury claims off you |
| License bond (where required) | Certain financial or code failures | A limited safety net for the client |
Step 3: Get a certificate of insurance
Do not settle for the contractor’s word or a photo of a policy. Ask for a certificate of insurance (COI) sent directly from their insurance agent or company. A COI lists the coverage types, limits, and policy dates, and coming straight from the insurer confirms it is current and real. You can even ask to be listed as a certificate holder, which means the insurer notifies you if the policy is canceled during your project.
Pro tip — verify during the bid stage, not after you sign
Do this checking while you are still comparing candidates, not after you have committed. A contractor’s response to a routine request for a license number and a certificate of insurance is itself a data point: professionals hand them over without friction. If someone stalls, makes excuses, or gets defensive, you have learned something important before any money changed hands.
Red flags to watch for
- “My license is being renewed” or “I don’t really need one for this.”
- A license number that does not match the name on the contract when you look it up.
- Refusal to provide a certificate of insurance from the actual insurer.
- Only a cell number, no verifiable business address or registration.
- Pressure to skip the checks because they can “start today.”
Keep the paper
Once you have verified everything, save copies: the license lookup result, the certificate of insurance, and the contractor’s business details. If a dispute or a claim ever arises, having this documentation on hand makes your position far stronger than trying to reconstruct it after the fact.
FAQ
Where do I check a contractor’s license?
Through the official state or local licensing board that regulates contractors in your area, usually via an online lookup by name or license number. Checking the source directly is more reliable than trusting a card or a number the contractor gives you verbally.
What is a certificate of insurance?
It is a one-page document from the contractor’s insurer listing their coverage types, limits, and policy dates. Requesting it directly from the insurance agent or company confirms the coverage is real and current, rather than lapsed or fabricated.
Why does workers’ compensation matter to me as the homeowner?
If a worker is injured on your property and the contractor carries no workers’ compensation, you can be exposed to the claim. Confirming this coverage protects you from a serious and easily avoided risk.
What if a contractor is not licensed?
Requirements vary by location, but for permitted or major work, hiring an unlicensed contractor means no permit, no accountability to a licensing board, and often no valid insurance. Unless the job is minor and licensing is genuinely not required where you live, keep looking.
General information for homeowners — not legal or professional advice. Remodeling costs, permits, and licensing rules vary by location and change over time; confirm with a licensed local contractor.
