Verify a Contractor Before Hiring: Complete 10-Item Checklist

Contractor fraud costs American homeowners an estimated $17 billion annually, and the vast majority of victims had not completed basic pre-hire verification before signing a contract or writing a check. This 10-item checklist covers every meaningful verification step available to a homeowner before hiring a contractor. Completing all ten takes less than an hour and provides far more protection than any legal remedy available after problems arise.

Why Does Pre-Hire Verification Matter More Than Post-Hire Remedies?

The legal and regulatory remedies available to homeowners after a contractor dispute — state board complaints, bond claims, civil litigation — are meaningful but slow, expensive, and uncertain. Prevention is dramatically more efficient than remediation. A homeowner who spends 45 minutes on pre-hire verification before a $30,000 renovation project is in an incomparably better position than one who spends $5,000 in attorney fees trying to recover from a bad hire.

Item 1: Verify the License

Look up the contractor's license on your state licensing board's website. Confirm: active status (not expired, suspended, or revoked), the correct license type for the work you need, expiration date is in the future, and the name on the license matches the contractor you are hiring. In California, use cslb.ca.gov. Florida: myfloridalicense.com. Arizona: roc.az.gov. Or use CheckLicensed.com for a one-stop check across all 50 states for $0.99.

Item 2: Verify the Bond

Most licensed contractor records include bond information. Confirm the bond is currently active and has not been cancelled or exhausted. The bond protects you if the contractor fails to complete work or causes damage. Note the bond amount — a $5,000 bond on a $50,000 project provides limited protection, so additional due diligence steps matter even more for large projects.

Item 3: Verify Insurance

Request a certificate of insurance. Confirm the contractor carries general liability insurance (minimum $1 million per occurrence for most residential projects) and workers' compensation insurance. Call the insurer listed on the certificate to verify the policy is active and the coverage amounts are correct. Certificates can be fabricated; direct verification is the only reliable check.

Item 4: Confirm the Business Is Registered

Verify the contractor's business is registered with your state's Secretary of State. Most states allow free business registration searches online. A legitimately operating contractor should have an active business entity (LLC, corporation, or DBA). An individual operating without any business registration is a significant red flag.

Item 5: Review Disciplinary History

Most state licensing board lookups include a disciplinary history section. Review it. A single resolved complaint from years ago may be minor; a pattern of complaints for incomplete work, construction defects, or insurance violations is a serious warning. Formal actions (license suspension, revocation, monetary penalty) are particularly significant.

Item 6: Check Online Reviews Across Multiple Platforms

Search the contractor's business name on Google, Yelp, and the Better Business Bureau. Read the negative reviews as carefully as the positive ones — how the contractor responds to criticism is often more revealing than the reviews themselves. A pattern of similar complaints across multiple platforms is reliable signal; a single outlier review is less informative. Be skeptical of contractors with exclusively five-star reviews posted within a short window.

Item 7: Verify Subcontractor Credentials

Ask who will perform plumbing, electrical, and any other specialty work. Request the names and license numbers of subcontractors and verify each one separately. The general contractor's license does not authorize their subcontractors to perform licensed specialty work — each trade requires separate verification.

Item 8: Check Permit History

Many county and city building departments have online permit databases searchable by contractor name or license number. Search for your contractor. Do they have a history of pulling permits in your jurisdiction? A contractor who has performed dozens of permitted projects in your area has a documented track record. A contractor with no permit history (in a state that requires permits) is either new to your area or has been working without permits.

Item 9: Verify Local Registration Requirements

Many cities and counties require contractor registration separate from state licensing. Chicago requires city contractor licenses. New York City requires HIC registration. Many counties in Florida require local contractor registration in addition to state certification. Check with your local building department for any local registration requirements.

Item 10: Check for Pending Lawsuits or Judgments

Most county clerk websites allow free searches of civil court records by name. Search for the contractor's business name and owner name. A contractor with multiple active or recent civil judgments — particularly from homeowners — is a serious red flag. This step takes five minutes and can reveal information that does not appear in licensing board records.

Start your verification at CheckLicensed.com, which handles Item 1 instantly for $0.99. For everything else on this list, the additional time investment is minimal compared to the financial stakes of any significant home improvement project.