Ask if They're Licensed, Bonded & Insured. - Top 10 Things to Do When Hiring a Contractor - Ask if They're Licensed, Bonded & Insured.

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Check with your state or local government to make sure that they are licensed, bonded and have insurance. You should also find out how long they've been licensed, if they have any lawsuits against them and whether they’ve been cited for violations.

You can usually find this information online, at your state government’s website. But if you can't, then call them directly. In most states, a licensed contractor is required to pass an exam related to subjects such as business, law and specific occupational skills. They might also need to prove that they have on-the-job experience. A bonded contractor holds a surety bond that guarantees performance – ask for a copy of it, and check exactly what the bond guarantees ahead of time. And hiring an insured contractor – both for liability and workers’ compensation - means that the contractor cannot sue you if a worker gets hurt on your job.

The idea for all three is protecting yourself. Working with an unlicensed, unbonded or uninsured contractor leaves you with no legal recourse if the work isn’t done properly, and it also leaves you possibly liable for materials if the contractor doesn’t pay the bills. It’s vital for a successful project!

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