How to Verify a Contractor's License and Insurance

Check the license with the state or city

Licensing rules vary. Some states license general contractors and home improvement contractors statewide; others leave it to cities or counties, or only license trades such as electrical, plumbing and HVAC. Search for "[your state] contractor license lookup" and use the result on a .gov website.

A few examples of official lookups:

• California Contractors State License Board
• Florida DBPR license search
• Nevada State Contractors Board

When you look up the license, check that:

• The business name and license number match the estimate.
• The license is active, not expired or suspended.
• The license classification covers your type of work (a roofing license, for example).
• Any complaints or disciplinary actions are listed, and how they were resolved.

Confirm insurance with the insurer, not just a certificate

Ask for a certificate of insurance (COI) for general liability and workers' compensation. Then call the insurance agent listed on the certificate to confirm the policy is active and covers the dates of your project.

Workers' compensation matters because an injured worker who is not covered may try to claim against the homeowner. Some sole proprietors are exempt in some states; if so, ask how injuries would be handled.

Some contractors can have you added as a "certificate holder" so you are notified if the policy is canceled during your project.

Other checks worth a few minutes

• Permits: a contractor who will pull the permit is putting the work on record with your building department.
• Lead-safe certification: for homes built before 1978, renovation that disturbs painted surfaces should be done by an EPA Lead-Safe Certified firm (or under an EPA-authorized state program).
• Manufacturer certifications: some roofing, window and HVAC warranties are only available through certified installers.
• References and recent work: ask for addresses of recent jobs you can drive by.

What verification does not tell you

A valid license shows the business met your state's requirements; it does not rate the quality of the work, the price or how the contractor communicates. That is what references, written estimates and a clear contract are for.