How to Verify a Contractor's License

Hiring an unlicensed contractor puts you at financial and legal risk. If something goes wrong — structural damage, injury, code violations — you may have no recourse and could be held liable yourself. Verifying a license takes five minutes and can save you tens of thousands of dollars.

Step 1: Ask for the license number

Any licensed contractor should be able to give you their license number immediately. If they hesitate or claim they "don't need one," that's a red flag. License numbers are public records — they're not secret.

Step 2: Check your state's licensing board

Every state has an online license lookup tool. Search for "[your state] contractor license lookup" or "[your state] contractor licensing board" to find it. Enter the contractor's name or license number and verify:

• The license is currently active (not expired or suspended)
• The license covers the type of work you're hiring for
• The name on the license matches the company you're dealing with
• There are no disciplinary actions on record

Step 3: Verify insurance

Ask for a certificate of insurance (COI) naming your project or address. Call the insurance company listed on the COI to confirm the policy is active — fraudulent COIs are common.

• General liability: covers property damage and third-party injuries (minimum $1M per occurrence)
• Workers' compensation: covers injuries to workers on your property; without it, you could be sued

Step 4: Check reviews and BBB

Search the company name on Google, Yelp, and the Better Business Bureau. Look for patterns in negative reviews, not just individual complaints.

Red flags

• Contractor can't provide a license number or insurance certificate on request
• License is in a different state than where work is being performed
• Company name on license doesn't match the truck, business card, or contract
• Insurance certificate is handwritten or uses an unfamiliar insurance company name