How to Check a Contractor's Insurance (2026)
An uninsured crew-member injury on a job site triggers a six-figure personal-injury claim against the homeowner's property insurance — which excludes contractor-worker claims. This five-step verification transfers that risk to the contractor's carrier where it belongs.
Step 1: Receive the Certificate of Insurance (COI) before signing the contract
The COI is a standardized one-page document issued by the contractor's insurance broker. Request it in writing before signing. A contractor who delays or refuses a COI is a walk-away signal. A legitimate COI takes the broker 1 business day to issue.
Step 2: Verify the general liability coverage: $1M per-occurrence / $2M aggregate minimum
California doesn't mandate GL coverage by statute, but the industry baseline for residential remodels is $1M per-occurrence / $2M aggregate. Coverage under $1M = inadequate. Coverage of $2M per-occurrence / $4M aggregate = strong. Verify the numbers on the COI match.
Step 3: Confirm workers' compensation is a separate line with an active policy number
Workers' comp is mandatory in California for any contractor with paid crew. The COI should show workers' comp as a separate line item with a policy number and statutory minimum coverage. If the contractor claims 'Exempt' or 'work solo,' get it in writing — and walk around the job site to confirm no uninsured helpers show up.
Step 4: Verify the Certificate Holder field names YOU and your project address
A generic COI listing only 'Homeowner' or blank Certificate Holder field is weaker than one specifically naming you. Named Certificate Holders receive notification from the carrier if the policy lapses mid-project — unnamed ones don't. Request a re-issued COI with your name + address in that field.
Step 5: Call the carrier's verification line printed on the COI and confirm the policy is active
Every COI prints a producer (broker) phone number and sometimes a carrier verification line. Call the carrier directly (not the broker) and ask: 'Is policy #X active for [contractor name] as of today?' Confirm verbally. This 5-minute call eliminates forged-COI risk, which CSLB documented as the #1 insurance-fraud pattern in 2024-2026.
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