How to Verify a Contractor's License and Insurance

Diligence is the difference between a successful home project and a financial disaster. Before you hand over a deposit or open your home to a crew, you must confirm that the professionals you are hiring are legally authorized to work in your jurisdiction and carry the necessary financial protections to cover mistakes or accidents. A valid license proves a contractor has met state standards for knowledge and testing, while active insurance ensures that if a worker falls off a ladder or your roof leaks due to poor installation, you aren't the one left footing the bill. Never rely on a photocopy of a document; always go to the source to confirm the credentials are current and active.

Demand Credentials Upfront. Ask the contractor for their state-issued license number and a copy of their Certificate of Liability Insurance. If they hesitate or offer excuses for why they cannot provide these immediately, remove them from your list.
Go Straight to the Source. Visit your state's Department of Professional Regulation or Contractors State License Board website. Enter the license number to verify that it is 'Active' and in good standing.
Confirm Coverage Is Active. Call the insurance company listed on the Certificate of Liability Insurance provided by the contractor. Ask a representative to verify that the policy is currently active and covers the specific type of work you are having done.
Protect Against Worker Injuries. Confirm the contractor carries Workers' Compensation insurance for their employees. This protects you from being held liable if a worker is injured on your property.
Check Municipal Bond Rules. Check if your municipality requires a local bond or permit-specific bond for your project. A bond provides a safety net if the contractor abandons the job or fails to pay for materials.
File Your Paper Trail. Print the results of your license search and keep the certificate of insurance in your project folder. These are your records should a dispute arise later.