Insurance and Licensing: What You Need to Check

Orientation — What This Is

When we started our first major home renovation, we didn’t ask about licensing or insurance until the second meeting. By then the contractor had already drawn sketches and quoted a price. It felt awkward to pivot to questions about credentials at that point, but it was absolutely necessary.

Any company that installs windows or siding in Washington has to be registered as a contractor with the state, and registration comes with bonding and insurance requirements. You can verify that at the Washington State Department of Labor and Industries, and it is the first thing we checked before we let anyone near our frames.

The three things to verify before you hire anyone are their contractor license, their liability insurance, and their bonding. All three exist to protect you—not the contractor. A licensed contractor has shown the state that they know how to do the work safely. Insurance covers you if something goes wrong. A bond covers you if they take your deposit and disappear.

We learned that some contractors let their licenses lapse or carry insurance that doesn’t cover residential work. One estimate we got was for a company that turned out to be registered for commercial work only, which wouldn’t have covered our house. Checking matters.

Next Step

The Washington Department of Labor and Industries gives you access to a contractor verification tool on their website. You put in the contractor’s name or license number, and you see whether they’re currently licensed and what class of work they’re registered for. It takes five minutes.

While you’re on that page, look for their bond status. You’ll also want to call your homeowner’s insurance company and ask whether the work being done will be covered—some renovations trigger coverage questions, and you want to know that before the project starts.

Finally, ask the contractor for certificates of insurance directly from their insurance carrier. A copy they printed from their file isn’t the same thing as a formal certificate from the carrier, and insurance companies sometimes have gaps in their records.

The Key Figures

Three Checkboxes

Before you hire anyone: verify their contractor license with the state, ask for proof of liability insurance, and confirm they carry bonding.

License Classes

Washington contractors register by the type of work they do. Residential, commercial, and specialty classes exist. Make sure they’re licensed for your project type.

Bond Coverage Limits

A bond protects you if the contractor takes your money and doesn’t do the work. Ask what the bond limit is and whether it covers the full cost of your project.

Insurance Minimums

Most state requirements set minimum insurance coverage. Ask your contractor what their limits are and whether they meet your state’s minimums for residential work.

One More Check

We also looked up each contractor with the Better Business Bureau and checked Google reviews, but we learned that these sources aren’t regulated the way the state license and insurance verification are. A contractor can have a great online reputation and still not carry the insurance their customers think they have.

The state database and the certificate from their insurance company are the only sources that can’t be faked. Everything else—reviews, testimonials, portfolio—is important context. But the licensing and insurance are the non-negotiable foundation.

Taking the time upfront to verify licensing and insurance feels tedious, but it’s the difference between hiring someone who will stand behind their work and hiring someone who can’t legally be held responsible if they don’t. It’s the first question we ask every contractor now, and we wish we’d asked it first.