How do I verify a contractor's license, insurance, and bond status with the California Contractors State License Board before hiring them?
You can verify a contractor's license, insurance, and bond status for free on the California Contractors State License Board (CSLB) website. Performing this check is a critical step to protect yourself before signing a contract or allowing work to begin.
Here is how to verify a contractor's information:
Step 1: Get the Contractor's License Number
Ask the contractor for their seven-digit CSLB license number. Do not rely solely on a business name, as multiple companies can have similar names. The license number is the most accurate way to find their record.
Step 2: Go to the CSLB Website
Visit the CSLB's official "Instant License Check" search tool online at www.cslb.ca.gov.
Step 3: Search for the License Record
Enter the contractor's license number into the search box and click "Search" to view their license detail page.
Step 4: Review License Status and Classifications
Confirm that the license status is "Active" and in "Good Standing." An expired or suspended license is a major red flag. Also, verify that the business name and personnel listed match the contractor you are hiring. Check that their "Classifications" are appropriate for your specific project (e.g., "B - General Building" for a remodel, or "C-10 - Electrical" for wiring).
Step 5: Verify Bond and Insurance Status
On the same page, scroll down to find sections for bonding and insurance. Look for an active Contractor's Bond (currently $25,000) as required by Business and Professions Code § 7071.6. Also, check for active Workers' Compensation insurance, which is mandatory for any contractor with employees. You may also see information on General Liability insurance.
Important details and nuances:
A contractor's bond protects you from financial harm if the contractor violates state law, while liability insurance covers property damage or injuries. If a contractor states they are exempt from workers' compensation, it means they have certified under penalty of perjury that they have no employees. If they then use a crew, they are operating illegally, and you could be liable for workplace injuries.
Warnings and limitations:
The CSLB data is generally current but may not be real-time. For ultimate verification, ask the contractor for a certificate of insurance and call the insurance company directly to confirm the policy is active. Hiring an unlicensed contractor for any project valued at $500 or more (labor and materials combined) is illegal and strips you of CSLB protection.
This is general information and does not constitute legal advice. For complex situations, such as a dispute with a contractor or a large-scale project, consult with a qualified California attorney.
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Disclaimer:
This information is for general guidance only and should not be considered as legal advice. Please consult with a qualified attorney for specific legal matters.
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Updated: August 14, 2025
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