How to Verify a Contractor Is Licensed, Bonded & Insured (2026 Guide)

Before you sign a contract, write a deposit check, or let anyone start swinging a hammer in your house, you should spend five minutes verifying that your contractor is who they say they are.

A license check tells you four things no Google review can:

1. The business is legally allowed to do the work in your state
2. The license is active and current (not expired or suspended)
3. The license matches the project type (a "C-36 plumbing" license can't legally do your full kitchen remodel)
4. There are no disciplinary actions or unresolved complaints on file

Skip this step and you take on the risk yourself. If an unlicensed contractor damages your home, your homeowners insurance may decline the claim. If they get hurt on your property, you may be liable. And if the work fails inspection, you'll likely have to pay a licensed contractor to redo it from scratch.

Here's how to do the check properly — including what to do if your state doesn't have a lookup at all.

The 30-second version

If you're in a hurry:

1. Get the contractor's full legal business name and license number. A phone number isn't enough.
2. Open your state's official lookup (find it here →).
3. Check four fields: license status (must be Active), expiration date, license classification (must cover your project), and disciplinary actions (should be empty).
4. Separately, ask for current proof of insurance and bond — a license alone doesn't cover that.

Now the longer version, with the gotchas.

What a license verification actually tells you

Most homeowners assume "licensed" is a single, binary fact. It's not. A state lookup typically returns five distinct pieces of information, and each one matters:

1. Status. "Active," "Inactive," "Expired," "Suspended," "Revoked." Anything other than Active is a hard stop. An "Inactive" license most often means the contractor stopped paying their fees or let their continuing-ed lapse — which means they aren't currently authorized to take your job.

2. Expiration date. Most states issue licenses on a 1–3 year cycle. If the expiration is within 30 days of your project start, ask the contractor when they're renewing. Don't sign a multi-month contract with someone whose license expires next week.

3. Classification (scope). This is the one most homeowners miss. License classifications are trade-specific. A "Class B Residential" license in California covers most home remodeling. A "C-36 Plumbing" license does not — that contractor can legally re-pipe your bathroom but can't legally tile the floor afterward. If the classification doesn't match your project, the contractor will need to either subcontract that scope to a properly classified contractor or you'll need a different prime.

4. Disciplinary actions and complaints. Every state surfaces these differently. Some show pending and resolved complaints prominently; others bury them under a "Discipline" tab. Look for: license suspensions, citations, formal complaints in the last 5 years, and any restitution orders. One old, resolved complaint is normal. A pattern is a red flag.

5. Bond status (some states). Washington, Oregon, California, Arizona, and a handful of others publish bond information directly in the lookup. If your state does, check that the bond is currently posted and in the right amount for your project size.

The step-by-step lookup

Here's the generic flow that works in most states:

Step 1 — Gather information from the contractor. Ask for their full legal business name (the one on their license, which may differ from their DBA), the license number, and the state(s) they're licensed in. A reputable contractor will hand this to you without hesitation; one who hedges is telling you something.

Step 2 — Find your state's official lookup. Use our directory to jump straight to the right portal. Beware of third-party sites that look official — there are several "contractor license verification" services that resell data and may be out of date. Always verify on the .gov domain.

Step 3 — Search by license number first, then business name. License-number searches are exact. Name searches sometimes miss because contractors register under one entity and operate under a DBA. If you can't find the contractor by name, try the number; if the number returns nothing, the license either doesn't exist or has been wiped from the database (a serious red flag).

Step 4 — Read the full record, not just the headline. Most lookups show "Active" status at the top in green, and many homeowners stop reading there. Click through to discipline history, license history (renewals, lapses, classification changes), and any associated bond/insurance fields.

Step 5 — Screenshot the record. Save a dated screenshot of the lookup result. If anything goes wrong later, this is your evidence that the license was active when you signed.

"My state isn't listed" — what locally regulated means

Five states do not license general contractors at the state level at all:

• Kansas
• Missouri
• New York
• South Dakota
• Wyoming

The reason is simple: state law in those jurisdictions leaves contractor licensing up to individual cities and counties. There is no centralized state database to search, because the state doesn't issue the license in the first place.

This doesn't mean contractors in those states are unlicensed — most cities of any size have their own programs. New York City's Department of Buildings runs the Home Improvement Contractor (HIC) program. Kansas City, Missouri requires a city-issued contractor license for most work. Wichita, Sioux Falls, Cheyenne — all run their own.

To verify a contractor in a locally-regulated state:

1. Identify the city or county where the work will be performed (not where the contractor is based)
2. Search "[city name] building department contractor license" — make sure you land on a .gov URL
3. Most building departments offer either a public roster or a phone/email verification process
4. If your work is in an unincorporated area with no licensing requirement, ask the contractor for proof of insurance and references in lieu of a license — and consider this a stronger reason to verify those carefully

Our lookup tool has direct city links for the largest metro areas in all five locally-regulated states.

The terminology trap: license vs. registration vs. permit

Most articles use these words interchangeably. They mean different things, and confusing them is how homeowners end up surprised.

Eight states (WA, PA, NJ, MT, NE, RI, OK, IA) use registration systems instead of full licensing. Registration is meaningful — it usually requires a bond, sometimes insurance, and creates a record the state can pull if there are complaints — but it doesn't prove competency the way an exam-based license does. In a registration state, the bond and complaint history matter more than the registration itself.

A permit is something else entirely. Permits are pulled per-project from your city/county. A licensed contractor pulling permits in their own name (rather than asking you to pull them as the owner) is a green flag — it means they're putting their license on the line for the work.

Red flags to watch for in a lookup result

When you actually run the search, here are the warning signs that should make you stop and ask hard questions:

1. "Inactive," "Expired," "Suspended," or "Revoked" status. Hard no. Don't proceed until it's resolved.

2. License scope doesn't match the work. A specialty plumbing license can't legally perform general contracting work. If the classification is wrong, the contractor needs to either work as a subcontractor under a properly licensed prime, or you need to find a different contractor.

3. Recent disciplinary actions. One resolved complaint from five years ago isn't disqualifying. A citation in the last 12 months, an unresolved complaint, or any restitution order is.

4. Brand-new license with no history. New contractors aren't disqualifying — everyone starts somewhere. But if the license was issued two months ago and the contractor claims "20 years of experience," ask who they were licensed under previously. They may have lost a prior license under a different name.

5. Business name doesn't match. If the contractor introduced themselves as "Smith Construction" but the license is under "John Smith DBA Premier Builders," that's not necessarily wrong — but ask. The name on your contract should match the name on the license.

6. License is in a different state. A contractor licensed in Florida but working in Alabama needs an Alabama license to work on your Alabama home. Most states don't recognize out-of-state licenses without reciprocity.

7. Multiple license numbers under similar names. Often a sign of a contractor who has had licenses revoked and re-applied under variations of their business name. Read the discipline history on each.

Bond and insurance are separate checks

A license check does not verify insurance. This is the single most common mistake homeowners make.

A license proves the state has authorized the contractor to do the work. A bond is a financial guarantee, usually posted with the state, that pays out a limited amount if the contractor abandons the job or violates the law. Insurance — general liability and workers' comp — protects you if someone is hurt on your property or if your home is damaged during the work.

You need to verify each separately:

• Bond: in some states this shows up in the license lookup directly; in others, ask the contractor for a copy of the bond certificate.
• General liability: ask the contractor's insurance company directly. The contractor will give you the broker's number; call them and confirm the policy is current and the dollar limit (typically $1M for residential remodeling). Don't accept a certificate the contractor hands you — those are sometimes outdated or fabricated.
• Workers' compensation: this protects you. If a contractor's worker is injured on your property and the contractor doesn't carry comp, the worker can sue you personally. Required in almost every state for contractors with employees.

Trade-specific licensing notes

In states without state-level general contractor licensing — including Texas, Illinois, Indiana, Ohio, Colorado, Maine, Vermont, New Hampshire, Kentucky — specialty trades are still licensed at the state level. Plumbing, electrical, and HVAC almost always require a state license regardless of what the state does about general contracting.

This means that even if your remodeler isn't required to hold a state license, the plumber, electrician, and HVAC tech they subcontract to are. You can — and should — ask for the names and license numbers of the trade subs and verify those individually.

What to do if your contractor isn't licensed

It depends on your state and the dollar value of the project.

In some states, "handyman" work below a dollar threshold (commonly $500 or $1,000) doesn't require a license. Painting a single room, installing a ceiling fan, fixing a leaky faucet — these often fall under handyman exemptions. Larger projects almost always require a licensed contractor.

If your contractor isn't licensed and your project requires one, you have three options:

1. Walk away. Lowest risk, often the right choice for any structural, electrical, plumbing, or roofing work.
2. Ask the contractor to subcontract under a licensed prime. This is common — many skilled tradespeople work as subs for a licensed GC who carries the license, the insurance, and the contract liability.
3. Self-perform with permits in your name. Legal in most jurisdictions, but you take on all the liability, you have to pull permits yourself, and your insurance may not cover defects.

What you should not do: hire an unlicensed contractor for licensed work because they're cheaper. If the work fails inspection, your insurance will not cover damages, and you have almost no legal recourse against the contractor.

Browse the directory

Ready to verify? Pick your state below — the table is searchable, filterable by what kind of licensing your state runs, and includes city-level guidance for the locally-regulated states.

FAQ

How long does a license check take? Two to five minutes per contractor, once you have their license number. Searching by business name takes longer because of name variations.

What if the contractor refuses to give me their license number? Walk away. A licensed contractor knows their license is their most valuable credential and will offer it before you ask.

Are out-of-state licenses valid? Generally no. A handful of states have reciprocity agreements (mostly for adjacent states), but most require contractors to be licensed in the state where the work is performed.

Does a license guarantee good work? No — a license is a floor, not a ceiling. It proves the contractor met minimum competency standards and is legally accountable to a state board. Reviews, references, and a portfolio of recent work tell you about quality.

My contractor says they're "bonded and insured" but I don't see anything in the lookup. Is that a problem? Not necessarily — many state lookups don't surface bond/insurance directly. But you should still verify both independently, by calling the bonding company and the insurance broker. A contractor who is genuinely bonded and insured will have no problem giving you those contacts.

What if my state's lookup is broken or down? State portals do go offline. Try again in a few hours. If it's persistently broken, call the licensing agency directly — they'll verify a license over the phone in most cases. Our lookup directory lists the agency name for every state so you know who to call.

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