Flooring Installer License in New Mexico — License Required

A licensed contractor has met state-specific requirements including education, experience, exams, and background checks. They carry required insurance and bonds. An unlicensed contractor has met none of these requirements. Hiring an unlicensed contractor may void your homeowner's insurance, expose you to liability if a worker is injured, and leave you with no legal recourse for defective work.

No. A license means the contractor met minimum standards at the time of licensing. Always check reviews, ask for references, and see past project photos. However, a licensed contractor provides legal protections that an unlicensed contractor does not.

A contractor bond (surety bond) is a three-party agreement between the contractor, a bonding company, and you. If the contractor fails to complete a job or causes damage, you can make a claim against the bond. Bonds typically have limits ($5K-$100K) — they are a baseline protection, not comprehensive coverage.

General liability insurance covers property damage and bodily injury caused by the contractor. Always ask for a Certificate of Insurance showing at least $500,000-$1,000,000 in general liability coverage.

Workers' compensation covers contractors and their employees if injured on your property. Without it, an injured worker could potentially sue you as the property owner. Always verify workers' comp coverage before work begins.

The risks are significant: work may not pass inspection, homeowner's insurance may deny claims, you could be liable for injuries, and you have limited legal recourse. Where contractor licensing is required by law, hiring unlicensed is also illegal.