Checking a contractor's license, bond and insurance

Confirm that a contractor is licensed and insured before any work starts. Check the license with your state or county, and ask for proof of insurance. These steps work wherever the license was issued.

What you need

• The contractor's name, business name and license number
• The licensing office for your state, county or city
• A phone, for the insurance company

Steps

1. 1

   Get a copy of the license

   Ask for a copy, and write the number down with the business name. Check the expiration date.

   2 min

2. 2

   Confirm it with the office that issued it

   Contact the issuing office to confirm the license is in good standing. Some states have no statewide license for some trades, such as general contractors, and the county or city licenses them instead.

   5 min

3. 3

   Check that it fits the work

   The license should cover the type of work you're hiring for. If subcontractors will do part of the job, ask for each one's name and trade, and check their credentials and insurance the same way.

   2 min

4. 4

   Get the certificate of insurance

   Ask for a copy of the contractor's general liability insurance certificate, and check its expiration date.

   3 min

5. 5

   Confirm it with the insurer

   Contact the company that issued the certificate and ask whether the policy is valid.

   5 min

6. 6

   Ask about workers' compensation

   Ask whether the contractor's workers are covered by workers' compensation. A contractor with no employees may not carry it.

   2 min

7. 7

   Confirm the results

   The license is current and fits the work, and the insurer confirmed the insurance.

   1 min

Who runs the job

Ask who will oversee the project from start to finish, and get that person's contact information. That gives you someone to ask questions as the work goes on.

What a bond does

A bond means a bonding company has set aside money for anyone who files a claim against the contractor and wins it.

Why the liability insurance matters

General liability insurance protects your home from damage or negligence by the contractor, the contractor's employees and any subcontractors on your property. Ask your insurer how your own policy treats damage a contractor causes.