5 Things to Verify Before Hiring a Contractor

To verify a contractor before you hire, check five things: their license status, their insurance and workers' comp, their bond, real references, and a written contract. Skipping any one of these is how homeowners end up with an unlicensed worker, an uninsured accident, or a half-finished project and no recourse.

Most of this takes less than fifteen minutes total, mostly spent on free, public lookups. It just has to happen before you sign anything, not after.

Key Takeaways

• License status must show Active with your state board before any money changes hands

• General liability insurance and workers' comp protect you if something goes wrong on your property

• A surety bond may give you a path to recover some losses if the contractor violates licensing law. 

• References and reviews show how a contractor performs, not just what they claim in a pitch

• Many states require a written contract above a dollar threshold, so check your state's rules 

• Any contractor who resists one of these checks is telling you something

Why Verifying a Contractor Matters Before You Sign

Verifying a contractor protects you from three problems: unlicensed work, an uninsured accident, and a lost deposit. A quote and a handshake do not cover any of them.

Many state licensing boards offer free public lookup tools, so checking a license costs you a few minutes and nothing else.

If a worker gets hurt on your property and the contractor has no workers' comp, you may be on the hook. If the contractor walks off mid-project with your deposit, a license check and a contract give you a better path to recover something. None of this requires hiring a lawyer or a background check service. It requires five checks, most of them free.

Still at the finding stage? Start with this step-by-step guide on how to find a contractor.

How to Verify a Contractor: A 5-Point Hiring Checklist 

Work through these five checks in order. Each one takes a few minutes to a short phone call 

1. Check the License Status

Every state with licensing requirements runs a public lookup tool. In California, for example, work valued at $1,000 or more generally requires a license from the Contractors State License Board, and work that needs a permit or hired workers requires one at any amount. Other states set their own thresholds, so check yours. The status needs to show Active, not Expired, Suspended, or Inactive. Search by license number rather than business name alone, since business names and DBAs change but the license number does not.

Also confirm the license classification actually matches your project. A license that is active but issued for a different trade does not clear a contractor for your job. An active electrical license, for example, does not cover a roofing job.

2. Confirm Insurance and Workers' Comp

Ask for a certificate of insurance (COI) directly from the contractor, and if possible confirm it with the insurer. You are looking for two separate things: general liability insurance, which covers property damage, and workers' compensation, which covers an injured worker on your site. A contractor can carry one without the other, and both matter.

In California, the license lookup also shows workers' comp status. Keep in mind that a contractor with no employees may legitimately hold a workers' comp exemption, so ask what applies to your job. If a contractor cannot produce a current COI on request, that alone is reason to pause before hiring them.

3. Verify the Bond

Quick answer: A contractor license bond may give you a path to recover some money if the contractor violates licensing law. Claims are limited, and a bond is not a guarantee the job gets finished. In California, licensed contractors are required to carry a $25,000 contractor bond, and that detail shows up on the same license lookup as the status check. Other states differ: some require bonds and some do not, and where you check varies. Confirm the bond is current, not expired or exhausted by a prior claim.

4. Check References and Reviews

Quick answer: Call the references a contractor gives you, then cross-check reviews on more than one platform and look for patterns of missed deadlines or disappearing mid-project. A contractor's own reference list is curated, so call the ones they give you, but do not stop there. Cross-check reviews across more than one platform, and read a handful of the critical ones specifically. One bad review is normal. A pattern of missed deadlines or disappearing mid-project is not.

When you call a reference, ask about things a glowing summary won't tell you: whether the project finished on budget, whether the crew showed up when scheduled, and whether they would hire the same contractor again.

5. Get the Contract in Writing

A verbal agreement is not a contract. Many states legally require a written contract above a certain project value, and the threshold varies, so check your state's rules. It should spell out scope of work, materials, payment schedule, and timeline before you pay anything. If a contractor is reluctant to put terms in writing, treat that reluctance as the answer.

Your Hiring a Contractor Checklist at a Glance

What Else to Watch For Beyond the Paperwork

Paperwork confirms a contractor is legally allowed to work. It does not confirm they are good at the work or easy to deal with mid-project. A few signals worth watching for during the hiring conversation itself:

• How quickly and clearly they respond to your first few messages

• Whether they walk you through the project plan or just quote a number

• Whether they explain how costs are calculated instead of just stating a total

• How they react when you ask for license, insurance, or reference details. Defensiveness here is a preview of how disputes will go later.

None of these replace the five-point checklist. They just tell you what working with this contractor is likely to feel like once the paperwork checks out. If you are collecting several bids, here is the best way to get contractor quotes without chasing anyone down.

Bottom Line

Verifying a contractor does not take long, and skipping it can leave homeowners stuck mid-project with little real recourse. Run the five checks, in order, before any deposit changes hands.

Oliebids is a competitive-bid marketplace that helps with the comparison step. Contractors upload a license, insurance, and photo ID that our team reviews before they can bid. See how Oliebids reviews contractors. That is a head start, not a substitute. Oliebids is a marketplace, not a vetting service, so confirm current status with your state board and review the details yourself (read our trust and safety policy). References and the contract are still on you.

Ready to compare bids? Post your job and see how competitive bidding works.