How to Protect Yourself Before Hiring a Contractor

Skipping your due diligence when hiring a contractor is a massive gamble. The wrong choice leads directly to structural issues, sub-par work that doesn’t meet code, blown budgets, or worse—a contractor taking your deposit and disappearing entirely.

Before signing a contract or handing over money, take these basic steps to protect your home and your bank account.

1. Verify Their Business Address & Business Entity

Never rely solely on a phone number, a social media page, or a P.O. Box. A legitimate contractor operates out of a real, verifiable facility.

  • Check the Secretary of State website: Search the business name on your state’s Secretary of State online portal to confirm they are a registered business entity in good standing.

  • Verify the physical location: Look up their address on Google Maps. Confirm they have an actual shop, office, or operational hub—not an abandoned lot or an unassociated residential address.

2. Confirm Their License & Local Registration

Licensing requirements vary depending on your location and the trade (e.g., electrical, plumbing, HVAC, or general contracting).

  • Look up state licenses: Use your state’s online occupational license portal (such as elicense.ohio.gov in Ohio) to confirm the contractor’s license is active, listed under the correct trade, and free of serious disciplinary action.

3. Obtain a Certificate of Insurance (COI) Direct from the Provider

Never accept a verbal promise that a contractor is insured.

  • Request a COI: Ask the contractor for a Certificate of Insurance (COI) with you named as certificate holder.

  • Check the coverage: Ensure the policy carries general liability insurance (to cover accidental damage to your property) and Workers’ Compensation (to cover injuries on site).

  • Verify active status: Contact the insurance broker listed on the certificate to confirm the policy is currently active and hasn’t lapsed.

4. Understand the Consequences of Skipping These Steps

When you hire an unvetted or illegitimate contractor, you forfeit your legal and financial protection.

  • Shoddy or dangerous work: Unlicensed or untrained contractors often cut corners on materials, prep work, and structural standards—leaving you with hidden damage that costs twice as much to repair later.

  • Financial loss: Fraudulent operators often demand large upfront deposits, perform minimal or substandard work, and disappear.

  • Liability risks: If an uninsured worker gets injured on your property, you could be held financially liable for medical bills and lost wages.

  • Failed home sales: Unpermitted or improperly executed work will come back to haunt you when a home inspector flags it during a future property sale.

Taking ten minutes to check an address, look up a license, and request an official insurance certificate will save you thousands of dollars and months of headaches down the road.

Looking for a fully insured, licensed contractor with a real physical address? Contact us today!