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A contractor's license number and a certificate of insurance are starting points, not proof. You need to confirm both with the state and the insurer yourself. This guide walks through the checks in order and the questions to ask along the way.

Why the paperwork alone isn't enough

A license is more than a formality. In most states, getting one requires demonstrated experience, passing a contractor competency exam that covers trade and business law, often split into a trade exam and a separate business and law exam, posting a contractor bond, and passing a background check. For example, Florida general contractors must show four years of relevant experience, pass three separate state exams covering business and finance, contract administration, and project management, and submit to a fingerprint background check before they are licensed.

But an active license is the weakest possible bar. To really verify a contractor, you need to check the classification, bond, insurance, and disciplinary history in one workflow, because a green checkmark alone can still hide bad news. License records also don't show everything. In California, for instance, license records show the bond and workers' comp but not general liability, which is the coverage that pays if the plumber floods your kitchen or the electrician's work causes a fire.

Step 1: Get the license number and check it with the state

Get the license number directly from the contractor, then look it up on your state's licensing agency website. In Georgia, for example, you go to the Secretary of State's site, choose Licensing, then Licensee Search, and look under the Building & Contractors tab. In Connecticut, you search the eLicense database by name or registration number.

Confirm more than the word "active." Check that the status is active, that the classification matches the work you're hiring for, that there are no recent disciplinary actions, and that the business name on the license matches the name on your estimate. If nothing comes up in the search, that's a red flag.

Be aware that not every trade is licensed everywhere. In Georgia, certain specialty occupations such as roofers, painters, drywall contractors, and repair handymen are not required to be licensed by the state. Requirements vary by state and city, so check what applies where you live.

Step 2: Confirm the bond

Don't take the contractor's word for it. Confirm the bond with the issuing body or regulator, the same way you confirm the license record. That tells you whether the bond is live right now, not whether someone can produce a PDF.

Step 3: Verify insurance the hard way

Ask for a certificate of insurance (COI), then call the carrier or agent named on it. You want confirmation that the policy is active, current, and issued to the same business name that appears on your estimate. That is how you catch forged certificates, expired policies, and sloppy paperwork before they become your problem. Some contractors let their policies lapse but keep showing the old certificate.

Ask about general liability and, where it applies, workers' compensation coverage. Keep a dated note of who you called, when you called, and exactly what they confirmed. If a dispute comes up later, that note is worth more than the contractor's verbal promise.

Coverage requirements differ by state, trade, project type, and local jurisdiction. Some licensing boards require proof of insurance to issue or renew a license, and some states set specific liability minimums. If a contractor hesitates when you ask to verify insurance, walk away. A legitimate pro won't.

Step 4: Understand workers' comp exemptions

Some states allow contractors with zero employees to claim a workers' compensation exemption. Recent California legislation (SB 291, effective January 1, 2026) specifically targets contractors who falsely claim this exemption, introducing minimum fines of $10,000 for sole owners and $20,000 for others who misrepresent their employee status. If a contractor claims an exemption, ask how it is documented with a workers' comp certificate and consider verifying it through the state licensing board or the State Workers Compensation Board rather than taking their word for it.

Step 5: Check references and complaints

Licensing and insurance narrow the field, but many contractors will pass those checks. References help you compare. Ask for at least three previous clients with similar jobs, and contact every reference to ask whether they were happy with the timeline, budget, and overall quality of the work. You can also check with the Better Business Bureau to see if any complaints have been filed against the business.

Get written bids from several contractors. Be skeptical if a bid is too low, because cheaper is not necessarily better. Always insist on a contract with all guarantees, warranties, and promises in writing, and agree on start and completion dates written into the contract. Consider setting payment terms in conjunction with completed stages of the job.

What to ask contractors

Put these questions in writing, ideally in your first email or call, and keep the answers. A contractor who resists this process is telling you something.

A quick checklist

The whole process takes about five minutes if you do it manually through the state board websites. Do it before you sign anything.

Sources

CostBrick is an information and referral service. Verify licence and insurance before hiring. See our project checklist and verification guide.

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