Contractor License and Insurance
Ten minutes of verification against months of regret. Here is exactly what to check and how.
Trust, then verify anyway
License searches attach themselves to contractor searches throughout our demand data, and the instinct is right: licensing and insurance are the two checks that separate a professional operation from a phone number in a truck window. Both are verifiable in minutes, by you, for free, and neither should ever be taken on a handshake.
Licensing is state and sometimes city business, and requirements vary widely: some states license general contractors rigorously with exams, bonds and recovery funds; others regulate lightly or only above dollar thresholds. What never varies is the method: look the contractor up in the official registry yourself, confirm the license class covers your project type and size, and check for discipline history. A license number printed on a card means nothing until the registry agrees.
Insurance is the second gate and the more misunderstood one. General liability protects your property from the contractor's mistakes; workers compensation protects you from becoming the payer when someone is hurt on your property. Ask for certificates of insurance sent directly from the insurance agent, current-dated, and check that coverage does not expire mid-project. Uninsured crews make their cheapest bid the most expensive thing you ever bought.
The checks, in order
Each takes minutes. Skipping any of them is where the horror stories begin.
State license lookup
Find the official registry, search the exact business name and license number, confirm status, class and expiration.
Discipline and complaint history
Registries and consumer agencies log violations and judgments. One old complaint is life; patterns are the answer.
Liability certificate
A current certificate of general liability, sent from the agent, naming coverage limits that fit your project size.
Workers comp verification
Employees on your property must be covered, or a lawsuit can arrive at your door. Sole proprietors have state-specific rules worth checking.
Bonds and recovery funds
Some states require contractor bonds or run recovery funds that reimburse wronged homeowners. Know what safety net your state offers.
Permits pulled properly
The contractor, not you, should pull permits under their license. A pro asking the homeowner to pull permits is dodging accountability.
What does it cost?
Every check on this page is free: state registries are public, certificates of insurance cost contractors nothing to send, and building departments answer permit questions by phone. There is no paid service you need for basic verification.
The cost of skipping it is the entire downside distribution: unpermitted work discovered at resale, liens from unpaid subs, injury liability and paying twice for failed work. Verification is the cheapest risk management in the entire project.
Ballparks based on commonly published national averages, stated as assumptions, not measured local pricing. Your competing quotes set the real number for your home and ZIP.
How to hire for contractor verification work
Who does the work
The verification applies to whoever holds your contract: the general contractor on multi-trade work, or the specialty contractor on single-trade jobs. On GC projects, the GC's license and insurance umbrella is the one you verify; managing subs is their job.
What pros will ask
Just the contractor's business name and license number, which any legitimate operator provides instantly. From there the state registry, an insurance certificate request and one call to the building department cover everything on this page.
What to check before signing
That the registry status is active and covers your project class and size, that both liability and workers comp certificates are current and agent-issued, that permits will be pulled under the contractor's license, and that lien waiver language appears in the contract so paid money reaches the subs and suppliers behind it.
Related searches homeowners make
Pulled from the same demand data behind our General Contractors, Home Remodeling and Additions category.
Contractor License and Insurance questions, answered straight
How do I look up a contractor's license?
Search your state's official contractor licensing board or registry online for the business name or license number, and confirm status, classification and expiration yourself. City and county licensing applies in some places. If you cannot find the contractor in any registry, that is your answer.
What insurance should a contractor carry?
General liability sized to your project and workers compensation for anyone working on site. Ask for certificates of insurance issued directly by the agent, dated currently, and note expiration dates against your project schedule.
What actually happens if I use an unlicensed contractor?
Common consequences: no access to state recovery funds or bond claims, insurance that may not pay for resulting damage, unpermitted work flagged at resale, and in some states no ability to enforce the contract, in yours or theirs. The discount rarely survives contact with any of that.
What is a contractor bond and does it protect me?
A bond is a financial guarantee some states require, which can pay limited claims when a contractor violates licensing law or abandons work. Limits are modest and claims take process, so treat bonds as a backstop, not a substitute for vetting.
Why should the contractor pull the permit instead of me?
Whoever pulls the permit owns responsibility for the work meeting code. Contractors who ask homeowners to pull permits are often unlicensed for the work or dodging inspection accountability, and you inherit the liability. A pro pulls permits under their own license as a matter of course.
Get quotes for your remodeling or addition project
Free for homeowners. No obligation. Up to four local general contractors compete.
Keep planning your project
More guides from the General Contractors, Home Remodeling and Additions hub.