License and insurance checks are the highest-value 15 minutes in any hiring process — and almost nobody does them properly. Here is exactly how.
Ask every bidder for their contractor license number and the exact business name it is registered under. Legitimate pros often print it on bids and trucks. Hesitation here usually ends the conversation.
Every state licensing board has a free lookup (search "[your state] contractor license lookup"). Confirm: the license is ACTIVE, the business name matches the bid, the classification covers your work (a painting license does not cover electrical), and check for disciplinary actions or unresolved complaints.
Ask the contractor to have their insurer send you a COI directly (this prevents doctored PDFs). You want two coverages: general liability (typically $1M per occurrence for residential work) and workers’ compensation for every person on-site. Confirm the policy dates cover your project window.
If an uninsured worker is injured on your property, your homeowner’s policy — and ultimately you — can be on the hook. Sole proprietors are exempt from carrying comp in some states; if so, ask how they cover injury risk and consider requiring an exemption certificate.
A surety bond (required for licensure in many states) gives you a claims path if the contractor abandons work or violates license law. Bond amounts are often small ($10k–$25k) relative to project sizes — treat bonding as a floor, not full protection. Milestone escrow remains your strongest financial safeguard.
Post your project once — verified, insured local pros send you free competing quotes, and escrow protects every payment.
Get 3 Free QuotesSearch "[your state] contractor license lookup", enter the license number or business name, and confirm the license is active, correctly classified, and free of discipline.