March 28, 2026·7 min read

How to Check a Contractor's License and Insurance

Hiring an unlicensed or uninsured contractor is one of the most expensive mistakes a homeowner can make. If a worker is injured on your property and the contractor has no workers' compensation insurance, you may be liable. If the work fails inspection or damages your home, an unlicensed contractor has no professional accountability. Verifying license and insurance takes 15 minutes and can save you from financial and legal disasters that cost far more than the project itself.

Why License and Insurance Verification Is Non-Negotiable

Contractors know that most homeowners never verify their credentials. They count on it. The problem isn't limited to obvious scammers — some contractors genuinely don't understand the requirements; others let their coverage lapse between renewal dates. Before you sign anything or hand over a deposit, verify everything independently.

The risk of unlicensed work

Failed inspections — Work that doesn't meet code may need to be removed and redone by a licensed contractor, doubling your costs
Homeowner insurance problems — If a fire or water damage claim traces back to unpermitted work by an unlicensed contractor, your insurer may deny the claim
Sale complications — Unpermitted work must often be disclosed when selling and can delay or kill a sale
No recourse — Unlicensed contractors can't be reported to a licensing board because they have none. Your only recourse is civil court.

The risk of uninsured contractors

Injury liability — If a worker falls from a ladder on your property and has no workers' comp, you could be sued for their medical bills and lost wages
Property damage — If the contractor damages your home (flood, fire, structural) and has no liability insurance, collecting compensation requires a lawsuit
No protection on incomplete work — An uninsured contractor who walks off the job with your deposit has no bond to cover your losses

Step 1: Ask the Contractor for Their Credentials

Before doing any independent verification, ask the contractor directly for:

Their contractor license number and the issuing state
A certificate of insurance (COI) for both general liability and workers' compensation
Their bond number (if applicable)

A legitimate contractor should provide all of this without hesitation or delay. If they're evasive, unable to produce a COI on request, or suggest their coverage "is being renewed" — treat this as a serious red flag.

The certificate of insurance should name you (the homeowner) as the "certificate holder" or list your property address. Ask for this specifically — it means you'll be notified if the policy is cancelled.

Step 2: Verify the Contractor's License

Every U.S. state (and most Canadian provinces) maintains an online database of licensed contractors. These are public records, freely searchable:

How to find your state's verification tool

Search "[Your State] contractor license lookup" or "[Your State] contractor license verification"
Examples: California Contractors State License Board (CSLB), Texas Department of Licensing and Regulation, Florida Department of Business and Professional Regulation
The state's official website will end in .gov

What to verify

License number matches — The number they gave you should match what appears in the database
License status is "active" — Not expired, suspended, or revoked
License type covers your project — A roofing-only license doesn't cover electrical work. Check that the license type is appropriate for the specific work you're hiring them for
Name matches — The name on the license should match the contractor or company name on their quote and contract
No disciplinary actions — Many state databases show past complaints, disciplinary actions, or violations. Review these carefully

Some licenses are held by the business; others by an individual qualifier who must be present when licensed work is performed. If the qualifier doesn't show up on your job, the license may not technically cover the work.

Step 3: Verify Insurance Coverage

The certificate of insurance tells you what coverage exists, but the document alone isn't enough — you need to verify the coverage is current and authentic.

General liability insurance

This covers damage the contractor causes to your property. Minimum acceptable coverage for most home projects is $1 million per occurrence, $2 million aggregate. Call the insurance company listed on the COI to confirm:

The policy is active (not expired or lapsed)
The policy limits match what the COI states
The insured name matches the contractor

The insurance company is required to confirm active policies. This call takes five minutes and is worth making for any project over a few thousand dollars.

Workers' compensation insurance

This covers injuries to the contractor's employees while working on your property. Without it, injured workers can file a claim against your homeowner's insurance or sue you directly.

Important exception: if the contractor has no employees (a sole proprietor working alone), some states allow them to waive workers' comp coverage. Ask your contractor to clarify whether they have employees and what their coverage situation is. If they have any helpers or subcontractors, those people need to be covered.

Surety bond

A surety bond provides financial protection if the contractor fails to complete the work or abandons the project. Bonding requirements vary by state. For projects over $25,000, confirm whether the contractor is bonded and verify the bond amount. Contact the bonding company to confirm it's active and in good standing.

Step 4: Check Reviews and Complaints

Beyond license and insurance, check the contractor's reputation through:

Better Business Bureau (BBB) — Search for complaints, disputes, and the contractor's rating
Google Reviews — Look for patterns in complaints, not just the average rating
Angi (formerly Angie's List) — Review-verified contractor platform with some accountability mechanisms
State contractor board complaints — Some state licensing databases include complaint histories
Court records — Serious issues may appear in public civil court filings. Searching "[Contractor Name] + [County] + court records" sometimes surfaces lawsuits or liens

Red Flags That Should Stop the Hiring Process

Cannot provide a license number or insurance COI on request
License is expired, suspended, or covers a different trade than your project
Insurance company cannot confirm the policy when you call
Provides a COI with a different company name than their business
Requests very large upfront payment before any work begins (legitimate contractors typically ask 10–25% down, not 50% or more)
Pressure to make a quick decision or sign today
Quote significantly lower than all competitors without a clear explanation
Reluctance to pull permits or suggestion that permits "aren't necessary"
No physical business address (PO boxes only) or very new business with no review history

What to Do If a Contractor Fails Verification

Simply don't hire them. There are always other contractors. The risk is not worth the potential savings, and "I didn't know they were unlicensed" is not a legal defense when something goes wrong on your property.

If you're in a geographic area with genuinely limited contractor availability, ask whether they're in the process of getting licensed and insured, and consider waiting until they are — or adjusting the project scope to something that doesn't require a license.

The Bottom Line

Verifying a contractor's license and insurance takes 15–30 minutes and requires nothing more than a phone and internet connection. It's one of the most valuable things you can do before starting any home improvement project. The contractors who resist this step are telling you something important about how they operate — and that's information you need before the project starts, not after.

Once you've verified credentials, use Quoterly to collect and compare their quotes against market rates, so you're protected on both the legitimacy and the pricing of the work.