How to Check a Licence and Insurance Before Work Starts

Before anyone starts work on your home, it is worth confirming two things: that the business holds any licence your state requires for that type of work, and that it carries insurance. Both take only a few minutes to check.

Checking a licence

Licensing rules vary by state, and sometimes by city or county. Many states license trades such as electrical, plumbing, HVAC and general building work. To check:

• Ask the business for its licence number and the name the licence is issued under.
• Search your state's licensing board website. Most states have an online lookup.
• Confirm the licence is active, covers the type of work you need, and matches the business name.
• Look for any complaints or disciplinary actions listed on the record.

Checking insurance

Ask for a current certificate of insurance. The two most common types are:

• General liability insurance — covers damage to your property caused by the work.
• Workers' compensation insurance — covers injuries to workers on your property.

Check the policy dates to make sure the cover is current. You can also call the insurance company listed on the certificate to confirm the policy is active.

Other checks worth making

• Read reviews from more than one source.
• Ask whether the business will obtain any required permits.
• Get the scope, price, timeline and warranty in writing before work begins.

These steps apply whichever business you choose, and they only take a little time compared with the project itself.