How to verify if a contractor's liability insurance and workers' comp are actually active?

# Verifying Active Insurance Coverage

Direct Verification: The best approach is to ask the contractor for their insurance agent's contact information and call to confirm coverage directly. Most reputable contractors will provide this willingly. You can also ask them to show you current insurance certificates of insurance (COIs), which should list policy numbers, coverage amounts, expiration dates, and the insurance company's contact details.

Official Channels: For workers' compensation, you can verify through your state's workers' comp board or labor department website—most states have searchable databases where you can look up a business by name or workers' comp account number. For general liability, contact the insurance company listed on the certificate directly; their customer service can confirm whether a policy is active.

Red Flags: Be cautious of contractors who seem reluctant to provide proof, give vague answers about coverage, or only provide photocopies without agent contact info. Expired certificates or ones that seem hastily created are warning signs.

Why This Matters: Active insurance protects you if someone gets injured on your property or property damage occurs. Without it, you could be liable for medical bills or damages. It's also often required by local building permits and lenders.

Additional Tips: Ask for references and check online reviews on platforms like Google or the Better Business Bureau. Many contractors include insurance information on their websites or bid proposals. Don't accept verbal assurances alone—get it in writing and verify independently.

Taking 10 minutes to verify saves you from potential financial and legal headaches down the road. Most legitimate contractors understand this is standard practice and won't mind the verification process.