How to Verify a General Contractor’s License and Insurance Before You Sign a Contract

A license number printed on a business card or truck door tells you almost nothing until you check it against a state database. Contractors can list expired, suspended, or borrowed license numbers, and homeowners rarely catch the problem until after a deposit check has cleared. Verifying license and insurance status takes about 20 minutes and it should happen before any contract is signed, not after work begins.

Get the Exact License Number, Business Name, and Qualifier

Ask the contractor for their license number, the exact legal name on the license, and the name of the qualifying individual (the person who holds the trade license on behalf of the company). These three pieces of information rarely match perfectly in scam situations. A common trick is running a job under a company name while the actual license belongs to a different person, a relative, or a business that closed years ago.

Write down the license number exactly as given, including any letters or hyphens. A single transposed digit will pull up a completely different contractor in the state database, sometimes one with a clean record that gives false confidence.

Search the State Licensing Board Directly

Every state that requires general contractor licensing maintains a public lookup tool, usually through a Department of Consumer Affairs, Department of Business and Professional Regulation, or a dedicated contractors board. California’s Contractors State License Board, Florida’s DBPR, and North Carolina’s Licensing Board for General Contractors are examples of searchable public databases. A few states, including Texas and Missouri, do not require a general state license at all, though many cities and counties within them do, so check municipal requirements separately.

When the license record loads, check these details:

Status: active, inactive, expired, suspended, or revoked
Expiration date and whether it falls within the next 60 days
License classification (general building, residential remodeling, roofing, electrical) and whether it matches the scope of your project
Bond amount on file and whether it meets the state minimum
Disciplinary history, complaints, or civil judgments listed against the license

Print or screenshot this page with the date visible. Licenses can lapse quickly, and having a record of the status on the day you checked protects you if a dispute arises later.

Confirm Insurance Coverage Directly With the Carrier

A certificate of insurance handed to you by the contractor is not proof of active coverage. Certificates can be altered, expired, or issued for a policy that was later canceled for nonpayment. Call the insurance agency listed on the certificate and ask them to confirm the policy number, coverage dates, and coverage limits. Request that the agency email or fax a current certificate directly to you, naming you as the certificate holder, rather than relying on a copy the contractor provides.

For residential projects, general liability coverage typically ranges from $500,000 to $2 million per occurrence. Commercial projects often require higher limits, sometimes $2 million to $5 million depending on the scope and the property owner’s requirements. If the coverage amount seems low relative to the size of your project, ask the contractor to increase it or add you as an additional insured for the duration of the job.

Verify Workers’ Compensation and Bonding Separately

General liability insurance covers property damage and third-party injury claims. It does not cover injuries to the contractor’s own employees on your property. If the contractor has any employees, ask for a certificate of workers’ compensation insurance and confirm it with the state workers’ compensation division or the insurance carrier directly. Without this coverage, an injured worker (or their attorney) can pursue a claim against the property owner.

Bonding is different from insurance. A contractor’s bond is a financial guarantee, usually required by the state as part of licensing, that provides limited compensation to consumers if the contractor fails to complete work or violates licensing law. Bond amounts vary widely by state and project size, sometimes as low as $7,500 for residential remodelers and much higher for commercial general contractors. Ask the state licensing board or the surety company listed on the bond to confirm the bond is currently active and has not been exhausted by prior claims.

Watch for These Verification Red Flags

The license search returns no results, or results under a different business name than the one on your proposal
The license status shows expired for more than 30 days with no renewal pending
The contractor resists providing the insurance agent’s direct phone number or asks you to skip that step
The bond amount on file is significantly below the state minimum for the license classification
The name on the insurance certificate does not match the business name on the contract
Multiple recent complaints or disciplinary actions appear on the licensing board record

Any one of these findings is a reason to ask direct questions before moving forward. Several of them together are a reason to look elsewhere.

Before signing anything or handing over a deposit, collect the contractor’s license number, business name, insurance agent’s phone number, and workers’ compensation carrier information in writing. Spend the next 20 minutes calling the state licensing board and the insurance agency to confirm everything independently, and keep dated records of what each source told you.