What to Check Before Hiring a Contractor in California

Start with the license. On the CSLB "Check a License" tool or in this directory, confirm it reads Active and that the classification covers your project: a C-39 for roofing, a C-20 for HVAC, and so on. The license number should appear on every bid and on the contract. CSLB license numbers are 6 or 7 digits, so search by number when you have it.

No number? Search by name, with CSLB's quirks in mind: enter an individual's last name first, try the name with and without internal spaces ("Mc Donald" and "McDonald"), use roughly the first 10 to 15 letters, and drop a leading "The" or "A" from a company name. Match the result to the exact business you're hiring; names and DBAs change, license numbers don't.

Only Active means a valid license. Expired means it lapsed; suspended means CSLB has stopped the contractor from operating; inactive means the contractor chose not to practice; revoked means it was taken away. None of those authorize new work.

These are three different protections. The $25,000 contractor bond, required of every active licensee (Business & Professions Code §7071.6), pays consumers harmed by license-law violations; it is not an insurance policy or a warranty fund. Workers' compensation covers the contractor's workers if they're hurt. General liability insurance covers damage to your property.

The CSLB record shows the bond and workers' comp. Any contractor with employees must carry workers' comp, and five classifications must carry it regardless of employees: C-8 Concrete, C-20 HVAC, C-22 Asbestos Abatement, C-39 Roofing, and C-61/D-49 Tree Service. From January 1, 2028, every licensee must carry it.

Liability insurance is different: California generally doesn't require it, with one exception. Contractors licensed as LLCs must carry at least $1,000,000 of liability coverage (Business & Professions Code §7071.19), and because the insurer files it with CSLB, an LLC's coverage shows under "Liability Insurance History" on Check a License. For everyone else, ask the contractor directly.

California home-improvement work requires a written contract (Business & Professions Code §7159). It should name the contractor and license number, the scope, the total price, and a payment schedule tied to milestones.

The down payment is capped at 10% of the price or $1,000, whichever is less. Confirm permits will be pulled in the contractor's name, and keep records of every payment.

Ask for references and examples of recent, similar work. Check the contractor's disciplinary record on CSLB's license-detail page, which lists resolved actions such as citations, suspensions, and revocations. CSLB does not publish pending or unproven complaints, so a clean page means no resolved discipline, not necessarily that no complaint was ever filed.

A suspended or revoked status, or a license that doesn't match the business, is a reason to pause before you sign.

For any coverage CSLB doesn't display, ask for a certificate of insurance: a one-page summary naming the insurer, the policy number, the coverage limits, and the effective and expiration dates. Then verify it, because certificates can be altered or stale: call the insurer or broker listed on the certificate and confirm the policy is current and matches what you were handed.

Check that the coverage dates span your project and that the named insured is the same business on the contract and the CSLB license. If a contractor can't or won't produce a verifiable certificate, weigh the risk: if an uninsured worker is injured on your property, you could be asked to pay through your homeowner's insurance policy or face lawsuits.