All states New Jersey

1. Get the license number from the contractor

   Ask for the license number before anything else. A licensed contractor has it on the bid, the contract, the business card and often the truck. If someone says "we're licensed and insured" but can't produce a number on the spot, treat that as your first answer.

   Write down the exact business name as well as the number. In New Jersey the license may be held by a company or by an individual, and the name on your contract has to match the name on the license.

2. Search the number on the official site

   Search the number on the official site. In New Jersey that is the NJ Division of Consumer Affairs, Regulated Business Section (Home Improvement Contractor Business) (opens official site) license search at newjersey.mylicense.com. Search by the number first; a name search can miss a business that is licensed under a different legal name.

   New Jersey splits licensing across more than one board: NJ Division of Consumer Affairs, Regulated Business Section (Home Improvement Contractor Business); NJ Board of Examiners of Electrical Contractors; NJ State Board of Examiners of Master Plumbers; NJ State Board of Examiners of HVACR Contractors. Electrical, plumbing or HVAC work may be licensed by a different board than general construction, so make sure you are searching the right one.

3. Read the record: status, name, expiration

   Three things have to line up. The status should say active, current or valid, not expired, inactive, suspended or revoked. The name on the license should be the business or person on your contract. The expiration date should be after the day the work finishes, not just after the day you sign.

   Look for a complaints or discipline section on the record. Most New Jersey license searches show open complaints, past discipline and sometimes bond claims. One old complaint on a long-running license is normal; several recent ones are not.

4. Check that the license covers your job

   New Jersey licenses home improvement, electrical, plumbing and HVAC work at the state level. A license covers one kind of work, so a roofer's license doesn't cover your electrical panel, and a specialty license doesn't cover a whole remodel. Check that the classification or license type on the record matches the job you are hiring for.

   Hiring for one trade? New Jersey may license it through a different board. See electricians in New Jersey , plumbers in New Jersey or HVAC contractors in New Jersey .

5. Know the small-job line

   We haven't confirmed an official small-job exemption for New Jersey. Assume any job that needs a permit needs a licensed contractor.

6. Ask for proof of insurance

   New Jersey requires insurance to hold a license: Commercial general liability of at least $500,000 per occurrence, plus workers' compensation unless exempt.

   A bond is also required: Additional security (bond, letter of credit or deposit) of $10,000, $25,000 or $50,000 depending on contract values.

   Whatever the state requires, ask for a certificate of insurance made out to you, and call the insurer on the certificate to confirm it is current. A license search tells you the contractor met the requirement when the license was issued or renewed, not that the policy is still paid.

7. Make sure the permit is pulled in the contractor's name

   Any job that needs a permit should have the permit pulled by the contractor, under the contractor's license. A contractor who asks you to pull the permit as the homeowner is usually hiding a license problem. Building permits in New Jersey (opens official site) .

8. If something goes wrong, file with the board

   If the contractor stops showing up, does work the permit doesn't cover, or the license turns out to be wrong, put it in writing to them first, stop paying, then file a complaint in New Jersey (opens official site) . Boards can suspend licenses, which gets attention a lawsuit doesn't.