✅ How to Verify a Contractor's License and Insurance (Step by Step)

Every year, homeowners lose billions of dollars to unlicensed contractors. Bad work, disappearing deposits, injuries with no coverage, and legal liability all trace back to skipping a few minutes of verification. Here is exactly how to do it right.

Why This Matters More Than You Think

Hiring an unlicensed contractor is not just a quality risk. It is a financial risk. If an unlicensed worker gets hurt on your property, you may be personally liable for their medical bills and lost wages. If unpermitted work causes a fire or structural failure, your homeowner's insurance may deny the claim. If the contractor does shoddy work and disappears, you have limited legal recourse because they were not subject to licensing board oversight.

Step 1: Get the License Number

Ask every contractor you are seriously considering for their state contractor's license number. This is a reasonable, standard request. Any contractor who hesitates, gives you a runaround, or says something like "I've been doing this 20 years, I don't need to prove anything" is telling you something important.

Get the number in writing, either in the quote or in an email. Also ask for the specific license type, because in many states there are different license categories for different types of work (electrical, plumbing, general contracting, specialty contracting).

Step 2: Verify the License Online

Every state has a contractor licensing board with a searchable online database. Search your state name plus "contractor license lookup" and you will find it. Common databases:

• California: CSLB (Contractors State License Board) at cslb.ca.gov
• Florida: DBPR (Department of Business and Professional Regulation) at myfloridalicense.com
• Texas: TDLR (Texas Department of Licensing and Regulation) at tdlr.texas.gov
• New York: Department of State at dos.ny.gov

What to check: Is the license active (not expired, suspended, or revoked)? Does the license holder name match the company name you are dealing with? Is the license type appropriate for the work being performed?

Step 3: Check for Complaints and Disciplinary Actions

While you are in the licensing database, check for complaints and disciplinary actions. A single complaint from years ago may not be a dealbreaker. Multiple complaints for the same issue (incomplete work, no-shows, disputes over final payment) is a serious red flag. Some databases show complaints that were resolved as well as ongoing ones.

Step 4: Verify General Liability Insurance

Ask for a Certificate of Insurance (COI). This is a standard document that any insured contractor can produce within minutes by calling their insurance agent. The COI should show:

• General liability coverage (minimum $1 million per occurrence for most projects)
• Your name and address as the certificate holder
• Policy expiration date (confirm it is current)
• The contractor's business name matching what you are hiring

Call the insurance company listed on the COI to confirm the policy is currently active. Policy numbers can be faked or the policy may have lapsed. A quick 5-minute call eliminates that risk.

Step 5: Verify Workers' Compensation Coverage

Workers' comp is separate from general liability and covers workers who get injured on the job. Without it, you as the property owner can be liable for injured workers' medical costs. Ask specifically for proof of workers' comp coverage if the contractor has employees. Solo operators without employees may be exempt from workers' comp requirements in some states.

Step 6: Verify Bond Status

A contractor's bond protects you if the contractor fails to complete the job or causes financial harm. Many states require contractors to be bonded as part of licensing. Check the bond status in the licensing database. The bond amount should be sufficient for the size of project you are discussing.

Step 7: Cross-Reference with Review Platforms

After confirming the legal basics, check the contractor's reviews on Google, Yelp, the Better Business Bureau, and Angi (formerly Angie's List). Look for patterns in negative reviews rather than individual complaints. Also check if the business name has changed recently, which can be a way of shedding a bad reputation.

The Quick-Check Summary

Before any contractor starts work at your home, confirm four things: active license, active general liability insurance, active workers' comp coverage, and a signed contract. Four items, 20 minutes. That is the cost of protecting yourself on a $5,000-50,000 project.

Once you have confirmed they are legitimate, make sure the price is fair. QuoteScore benchmarks your contractor's quote against thousands of real jobs so you know you are getting both a trustworthy contractor and a fair price.