How to Check a Contractor's License, Insurance and Reviews
A few checks before you hire a contractor can save you from unfinished work, unlicensed repairs and costly disputes. Here's how to look up a contractor's license, confirm their insurance, read reviews and complaints, and get the most from references.
By Pond.com editors Updated 3 min read
Quick answer
- Look up the contractor on your state licensing board's website and check the license is active, in the right trade and in the same business name.
- Ask for certificates of insurance sent directly from the insurer, covering general liability and workers' compensation.
- Search reviews and check complaints with the licensing board and your state's consumer protection office.
- Ask for two or three recent references with similar jobs, and call them.
- For homes built before 1978, check that anyone disturbing paint is EPA lead-safe certified.
A contractor can be friendly, quick to reply and reasonably priced, and still be unlicensed or uninsured. These checks take an evening and are worth doing for anyone you'll pay more than a few hundred dollars.
Check the license
Most states license some or all contractors, and many cities and counties add their own rules. Electricians, plumbers and heating and cooling technicians are licensed almost everywhere.
- Ask for their license number, and check it's on their quote and contract.
- Look it up on your state contractor licensing board's website. Searching "[your state] contractor license lookup" usually finds it.
- Check that:
- The license is active, not expired or suspended
- It covers the type of work you're hiring them for
- The name matches the business you're dealing with
- There's no record of disciplinary action
If your state doesn't license general contractors, check with your city or county building department instead.
Check the insurance
| Coverage | Why it matters |
|---|---|
| General liability | Pays for damage the contractor causes to your home or property |
| Workers' compensation | Covers workers hurt on the job; without it, an injury on your property could become your problem |
Ask for a certificate of insurance sent directly from their insurer or agent, not a photocopy. Check the dates and the business name. For big projects, ask to be listed as the certificate holder so you're notified if the policy is canceled.
Some states also require contractors to carry a bond, which can pay you if they don't finish the work or follow the rules, up to a set amount.
Read reviews and complaints
- Search the business name with words like "reviews" and "complaints."
- Read the negative reviews. One unhappy customer isn't a red flag; a pattern of unfinished jobs or money problems is.
- Look at how they respond to complaints.
- Check the licensing board and your state's consumer protection office for complaints.
Talk to references
Ask for two or three customers with similar, recent jobs. Good questions to ask:
- Did the work start and finish on time?
- Did the final price match the quote? If not, why?
- How did they handle problems and changes?
- Did they keep the site clean and safe?
- Would you hire them again?
For a big project, ask if you can see a finished job or one in progress.
Other checks
- Permits: your building department may show permits a contractor has pulled, a sign they do work properly.
- Lead-safe certification: if your home was built before 1978, contractors disturbing painted surfaces must be certified under the EPA's lead-safe rules.
- A real business: a physical address, a local phone number and a written contract.
Common questions
You may have little protection if something goes wrong. Unlicensed work can fail inspections, cause problems when you sell, and may not be covered by insurance. In many states, homeowners can't use state recovery funds or some legal protections when the contractor wasn't licensed.
Licensed means the contractor meets the state or local requirements to do the work. Bonded means a surety bond can pay you if they don't finish the job or follow the rules, up to the bond amount. Insured means they have insurance, such as general liability for damage and workers' compensation for injured workers.
Rules vary widely. Some states license most contractors, others license only certain trades such as electricians and plumbers, and some leave licensing to cities or counties. Check your state licensing board and your local building department.