How to check a contractor’s license and insurance

Why it matters

The Federal Trade Commission’s advice on avoiding home improvement scams starts with this: “Consider only contractors who are licensed and insured” (FTC). A license tells you the business has met whatever standard your state or city sets for that trade — exams, experience, a bond, or just registration. Insurance means that if someone is injured on your property, or the work damages your home, there is a policy to claim on other than your own.

Neither guarantees good work. But a contractor who cannot show either is asking you to carry risks a properly set-up business carries itself.

Licensing is set by your state — and sometimes your city

There is no national contractor license. Each state decides which trades need a license, at what level, and above what size of job. Some license general contractors statewide; some leave it to counties and cities; some only register them. Trades such as electrical and plumbing are licensed in most places, often at several levels. Small handyman work may need no trade license at all, though a local business license usually still applies.

So do not rely on a rule you read for another state, including on this page. The authority to check is the one where the work is being done.

Checking a license, step by step

1. Ask the contractor for their license number, the name it is issued under, and which authority issued it. A legitimate contractor will give this without fuss; the FTC says it belongs in the written contract (FTC).
2. Find the licensing authority for that trade where you live. Search for your state name plus “contractor license lookup” or the trade (“electrical license lookup”), and make sure you land on a government site — usually ending in .gov — not a third-party directory. If the state does not license that work, check your county or city.
3. Search the number, and the business name. Check that the name matches the one on your quote, that the license is active (not expired, suspended or revoked), and that it covers the type of work you are hiring for. A license for one trade does not cover another.
4. Look for disciplinary actions or complaints, if the lookup shows them. Many state boards list them alongside the license.
5. Note whether the license requires a bond, and whether one is on file. Some states require contractors to carry a bond that consumers can claim against.

If the person you are dealing with is not the license holder — a salesperson, or a subcontractor — ask whose license the work is under, and check that one.

Checking insurance

The FTC says to ask for proof of insurance (FTC). In practice that means a certificate of insurance, a one- or two-page summary the contractor’s insurance agent issues. Check two kinds of cover:

• General liability, which covers damage the contractor causes to your property and injury to third parties.
• Workers’ compensation, if the business has employees. Rules on who must carry it are set by each state. Without it, an injured worker on your property may look to someone else to pay — ask your own home insurer how your policy treats that.

Then verify it, because a certificate is easy to copy and only shows cover on the day it was printed:

1. Read the business name, policy dates and types of cover. The name should match the contractor, and the dates should cover the whole project.
2. Call the insurance agent or company listed on the certificate — using a number you look up yourself, not one printed on the document — and ask them to confirm the policy is active.
3. Better still, ask the contractor to have their agent send a certificate directly to you, naming you as the certificate holder for your project.

For a large job, ask your own home insurer whether you should require any particular cover, and whether anything about the work affects your policy.

Get it in writing

The FTC recommends getting more than one estimate, each describing the work, materials, completion date and price, and not automatically taking the lowest (FTC). Once you choose, its list of what the written contract should include:

• The contractor’s name, address, phone number and license number.
• An estimated start and completion date.
• Any promises made in conversation — about scope, labor and materials.
• A written statement of your right to cancel within three business days, where that right applies.

The FTC also says not to sign with blank spaces, not to pay the full amount up front, and not to make the final payment until the work is finished to your satisfaction. Some states limit how large a down payment can be; your state or local consumer protection office can tell you.

Ask who pulls the permit. The FTC lists a contractor asking you to get the building permits yourself as a warning sign (FTC). Permits are normally the contractor’s job, and they bring an inspection that checks the work.

Red flags

The FTC’s warning signs of a home improvement scam (FTC) include:

• Knocking on your door, saying they are “in the area” or have materials left over from another job.
• Pressure to decide right away.
• Asking for the full amount up front, or cash only.
• Asking you to get the permits.
• Steering you towards a lender they know to pay for the work.

After storms and other disasters, the FTC adds that out-of-town crews and people promising quick fixes are common, and to check credentials before agreeing to anything (FTC).

References and reviews

The FTC suggests asking people you trust for recommendations, checking with local consumer protection officials and your local Home Builders Association for complaints, and searching the business name with words like “complaint” or “scam” (FTC). Ask the contractor for two or three recent customers with similar jobs, and call them: was the work finished on time and on budget, and would they hire them again?

How badges on Fixerlane fit in

Some businesses on Fixerlane carry badges, such as Licensed or Insured, earned by sending documents that Fixerlane staff reviewed. The Licensed badge shows the license number and the authority that issued it, so you can look it up yourself, and badges come off when the document expires. What each badge means explains exactly what was checked.

Most listings do not have badges, and a badge is a starting point rather than a replacement for the checks above — a license can lapse and a policy can be cancelled between reviews. Run the lookup yourself before you sign.

You can compare general contractors, remodelers and handymen near you and contact them directly; Fixerlane never charges homeowners. How this guide was researched is on how we research.

Common questions

How do I look up a contractor’s license?

Ask for the license number and issuing authority, then search it on that state, county or city licensing site — a government site, not a third-party directory. Check the name, status and the type of work it covers.

Does a handyman need a license?

It depends on your state and the job. Small repairs often need only a local business license, but electrical, plumbing and larger jobs usually need a licensed trade. Ask your state or local licensing office.

Is a certificate of insurance enough proof?

Only once you have confirmed it. Call the insurer on a number you look up yourself, or ask the contractor’s agent to send the certificate directly to you.

What insurance should a contractor have?

At least general liability, and workers’ compensation if they have employees, where your state requires it. Ask your own insurer what you should require for a large job.

How much should I pay up front?

The FTC advises not paying the full amount up front and not making the final payment until the work is done. Some states cap down payments; ask your consumer protection office.

Who should get the building permit?

Normally the contractor. The FTC lists a contractor asking you to get permits as a warning sign.

Does Fixerlane check every contractor’s license?

No. Some listings carry badges from documents Fixerlane staff reviewed, and the badges page explains each one. Always check the license and insurance yourself before you sign.

Sources

Safety and standards advice on this page comes from these publishers. Dates are the ones each page shows.

• Federal Trade Commission, How To Avoid a Home Improvement Scam (July 2022)
• Federal Trade Commission, How To Avoid Scams After Weather Emergencies and Natural Disasters (modified April 28, 2026)