Verifying a contractor's license is one of the most important steps in the hiring process. Licensed contractors have met minimum competency standards and are accountable to regulatory bodies.
Why License Verification Matters
Hiring a licensed contractor provides several important protections:
- Ensures the contractor has met training and experience requirements
- Work is more likely to meet building codes
- You have recourse through the licensing board if problems arise
- Required permits can be properly obtained
- May be required for insurance claims or home sales
Important: Unlicensed work may not be covered by your homeowner's insurance and can create problems when selling your home.
How to Check a License
Most states have online databases where you can verify contractor licenses. Here's how to do it:
- Get the license number Ask the contractor for their license number directly.
- Visit your state licensing board website Search for "[Your State] contractor license lookup" to find the official verification site.
- Search the database Enter the license number or contractor name to view their record.
- Review the results Check that the license is active, not expired, and matches the contractor's name and business.
What to Look For
When reviewing a contractor's license record, check for:
- License status (active, expired, suspended, or revoked)
- License type matches the work you need done
- Expiration date is in the future
- Any disciplinary actions or complaints
- Workers compensation and liability insurance on file
Tip: Some states require different licenses for different types of work. Make sure the contractor is licensed for your specific project.
Verifying Insurance
In addition to licensing, verify the contractor has adequate insurance:
- Request a Certificate of Insurance (COI)
- Call the insurance company to confirm the policy is active
- Check that coverage amounts are adequate for your project
- Ensure both general liability and workers comp are included
Summary
Never skip license verification. It takes just a few minutes and provides important protection for your investment. If a contractor cannot provide verifiable credentials, look elsewhere.