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Hiring 5 min read

How to Check If a Contractor Is Licensed and Insured

Before you sign anything, verify a contractor's license and insurance. Here is exactly what to ask for and how to confirm it yourself.

By RenovateRadar ·

Hiring an unlicensed or uninsured contractor is the single biggest risk homeowners take on a renovation. If something goes wrong — an injury on site, shoddy work, a fire — you can be left holding the bill. Verifying credentials takes ten minutes and protects you for the life of the project.

Verify the license

Most states and many cities require contractors to hold a license for work above a dollar threshold. Ask for the license number and look it up on your state contractor board's website — confirm it is active, in the right classification, and issued to the business you are hiring.

Confirm two kinds of insurance

  • General liability — covers property damage the contractor causes to your home.
  • Workers' compensation — covers injuries to their crew so those claims never land on your homeowner policy.

Ask for a Certificate of Insurance (COI) and confirm the coverage dates are current. For larger jobs, you can ask to be named as an additional insured.

Red flags

  • Refuses to provide a license number or COI.
  • Wants a large cash deposit before any work.
  • Has no written contract or fixed scope.

On RenovateRadar, license and insurance are verified before a contractor earns a badge — but you should always confirm current documents before you sign.

Frequently asked questions

What happens if I hire an unlicensed contractor?
You may have little legal recourse for defective work, your permits may be invalid, and your homeowner insurance may deny related claims. Unlicensed work can also complicate a future home sale.
Does a contractor need to be licensed for small jobs?
It depends on your state and the job's value — many jurisdictions set a dollar threshold below which a license is not required. Check your state board's rules for the specific trade.

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