How to Verify a Contractor's License Before Hiring

Why License Verification Matters

Hiring an unlicensed contractor is one of the most common and costly mistakes homeowners make. In states with licensing requirements, working with an unlicensed contractor can:

• Void your homeowner's insurance if a claim arises from the work
• Expose you to liability if a worker is injured on your property without workers' compensation
• Leave you with no legal recourse when work is defective (unlicensed contractors can't be disciplined by the licensing board)
• Create mortgage issues if your lender discovers unpermitted work during refinancing or sale

License verification takes under 2 minutes. It's free. And it's the single most important step you can take before signing any contract.

Step 1: Get the Contractor's License Number

Ask for the contractor's state license number before scheduling a site visit. Any legitimate licensed contractor will provide this immediately. Red flag: If they hesitate, offer to "get it later," or claim they're "in process" of getting licensed — walk away.

The license number should appear on:

• Their business card or letterhead
• Their vehicle signage
• Their written bid or proposal
• Their website (usually footer or "About" page)

Step 2: Find Your State's License Lookup Tool

Every state that requires contractor licensing has a free public database where you can verify license status. Use our state-by-state directory to find the official verification link for your state.

Common databases by state type:

• Full licensing states (CA, AZ, FL, NV): Comprehensive databases with license type, expiration, bonds, insurance, and complaint history
• Registration states: Simpler databases confirming active registration status
• No state license states (TX, NY, OH, CO): No central database — check with your county or city

Step 3: What to Check in the Database

Once you find the contractor in the database, verify:

License Status

The license must show as Active or Current. An expired, suspended, or revoked license is worse than no license — it means they've had issues with the board.

License Type Matches the Work

Many states have different license classifications. A plumbing license doesn't authorize electrical work. A residential license may not cover commercial projects. Verify the license type matches what you're hiring them for.

Bond Status

If your state requires bonding, check that the bond is current and the amount meets your state's minimum. A lapsed bond means the protective coverage has expired.

Insurance

Some databases show insurance status. But don't rely solely on this — always ask for a separate Certificate of Insurance (COI) naming you as an additional insured. Verify it with the insurance carrier directly.

Complaint History

States like California (CSLB), Arizona (ROC), and Florida show complaint history. A few resolved complaints over many years isn't necessarily disqualifying — look for patterns and how complaints were resolved.

Step 4: Verify Workers' Compensation Separately

Workers' compensation is typically filed separately from the contractor license. Ask for a current Workers' Comp certificate and verify it by calling the insurance carrier on the certificate. This protects you if a worker is injured on your property.

Step 5: Check with NASCLA for Multi-State Work

If you're in a state participating in the NASCLA Contractor License Reciprocity Agreement, contractors may hold a valid license issued by another member state. Verify through your state's board whether reciprocal licenses are valid.

What If Your State Doesn't Require a License?

In states like Texas, New York, Ohio, and Colorado, there's no statewide general contractor license. Here's what to do instead:

• Check for city or county registration — most major cities have local contractor registration requirements
• Verify the contractor has active business registration with the state
• Look for trade association membership (NARI, NAHB, ACCA for HVAC) as a quality signal
• Check the Better Business Bureau and Google Reviews with verified jobs
• Ask for references from recent local projects — and actually call them

The 2-Minute Verification Checklist

Before hiring any contractor:

• ☐ Got their license number in writing
• ☐ Verified license is Active in your state's database
• ☐ Confirmed license type covers your project
• ☐ Requested a Certificate of Insurance (General Liability + Workers' Comp)
• ☐ Verified COI is current and names you as additional insured
• ☐ Checked complaint history in the state database
• ☐ Got at least 2 professional references for similar work