How to Verify a Contractor's Liability Insurance Before Hiring (And Why It Matters Locally)

A contractor telling you they're "licensed and insured" isn't the same as actually confirming it. Every year, homeowners throughout St. Lucie, Martin, and Palm Beach County lose thousands of dollars — and take on real legal and financial risk — by hiring contractors who misrepresented their credentials. Here's exactly what to look for when verifying a contractor's liability insurance, plus additional vetting steps worth taking before you sign anything.

Why Insurance Verification Matters

If an uninsured worker is injured on your property, or a contractor accidentally damages your home during a project, you could be held financially responsible if the contractor doesn't carry proper coverage. A contractor's insurance isn't just protecting them — it's protecting you.

What to Look For on a Certificate of Insurance (COI)

A Certificate of Insurance, or COI, is a one-page document from a contractor's insurance agent or carrier summarizing their active coverage. Before hiring, ask for a current COI and check the following:

The Insured Name Matches the Business You're Hiring
The name on the certificate should match the contractor's actual business name and license, not a different entity, a subcontractor, or an unrelated company.

General Liability Coverage
This protects your home and property if the contractor causes accidental damage, such as a fire or major water damage, during the project. Confirm the coverage is active and that the limits are appropriate for the size of your project.

Workers' Compensation Coverage — Or a Valid Exemption
This is one of the most important, and most overlooked, things to verify. If a worker is injured on your property and the contractor doesn't carry workers' compensation coverage, the injured worker may have the legal right to pursue the homeowner for medical bills and lost wages. Florida law does not allow construction workers to be classified as independent contractors to avoid this requirement — they must be covered as employees or the business owner must hold a valid exemption.

Watch for "Ghost Policies"
A ghost policy is a workers' compensation policy that only covers the business owner, while excluding all other workers on the crew. A COI showing workers' comp coverage doesn't automatically mean your entire project crew is covered — confirm the certificate states coverage applies to "all employees" or shows statutory limits, not just the owner.

Active Policy Dates
Confirm the policy is currently active and won't expire before your project is expected to be completed. An outdated or soon-to-expire certificate isn't good enough.

Certificate Holder Field
For larger projects, consider asking that the certificate be issued listing you and your property address as the certificate holder, which can also trigger a notice if the policy is later cancelled.

Matching Description of Operations
The type of work listed on the certificate should reasonably match the project you're hiring the contractor for.

Don't Just Take the Certificate at Face Value

A COI can be outdated, altered, or issued for a policy that's since lapsed. If anything on the certificate looks blurry, edited, mismatched, or unclear, contact the insurance agent listed on the document directly to confirm the coverage is current before work begins. You can also independently verify workers' compensation coverage through the Florida Division of Workers' Compensation's Proof of Coverage database at MyFloridaCFO.com, which allows homeowners to check a contractor's coverage history directly.

Additional Vetting Steps Before Hiring Any Contractor

Verifying insurance is critical, but it's only one part of a complete vetting process. Before signing a contract, homeowners should also:

Verify the Contractor's License Directly
Use Florida's Department of Business and Professional Regulation license search at MyFloridaLicense.com to confirm the contractor's license is active, matches the business name on your contract, and has no disciplinary history.

Check Business Registration
Florida's Sunbiz.org allows you to confirm a contracting business is legitimately registered in the state and see how long it's been in operation.

Get Multiple Bids
Comparing at least two or three estimates helps you spot pricing that seems unrealistically low — often a sign a contractor is cutting corners on insurance, licensing, or permitting.

Ask for Local References
A contractor with a genuine local track record should be able to connect you with actual past clients in your area, not just curated online reviews.

Confirm Permitting Will Be Handled Properly
Ask how and when permits will be pulled for your project, and confirm this directly with your local building department once work begins. Unpermitted work can create serious problems later, including issues when selling your home.

Get Everything in Writing
A detailed, written contract should outline the scope of work, materials, payment schedule, and timeline. Be cautious of contractors who resist putting details in writing or who pressure you to pay entirely upfront or in cash.

Be Wary After Storms
Storm damage tends to bring a wave of door-to-door solicitation from contractors from outside the area. Take time to verify credentials even when repairs feel urgent.

Real Incidents That Show Why This Matters

These aren't hypothetical risks. Local law enforcement and news coverage have documented real cases involving unlicensed or fraudulent contractors right here in our service area:

Port St. Lucie — 21 Victims, Unfinished Homes
In April 2025, following a two-year investigation, Port St. Lucie Police arrested the owner of a local construction company after 21 homeowners reported paying substantial sums — in some cases over $100,000 — for home construction that was never completed. Investigators say subcontractors went unpaid, resulting in liens placed on the victims' properties, and in some cases, required permits were never pulled at all. Some victims were older adults, and the case resulted in more than 40 charges, including grand theft and racketeering.

Port St. Lucie — Fraudulent Pool Contractor Credentials
Port St. Lucie Police, working with the Florida Department of Financial Services and multiple county sheriff's offices, investigated a local pool contracting business after discovering the owners had submitted fraudulent documents and a forged signature to obtain their contractor credentials. Charges in the case included working as an unlicensed contractor, insurance application fraud, and concealing information to avoid workers' compensation premiums — the exact kind of insurance misrepresentation this article is about.

Stuart — Unfinished Kitchen Renovation
In 2025, an unlicensed individual in Stuart was arrested after homeowners paid him $11,000 for a kitchen renovation that was never completed. According to police, the contractor represented himself as licensed when he was not, leaving the homeowners out of pocket with unfinished work.

Post-Storm Warnings From Local Police
Following severe weather events, Port St. Lucie Police have repeatedly issued public warnings about unlicensed contractors going door-to-door offering quick roof repairs and other fixes, urging residents to verify licensing before agreeing to any work, particularly ahead of hurricane season when this activity tends to increase.

The Takeaway

None of this means every contractor is a risk — most local, licensed contractors are exactly who they claim to be. But these cases illustrate why a few minutes of verification, before any money changes hands, can prevent serious financial and legal exposure.

Our Commitment to Transparency

Fresh Start Remodeling is proud to provide proof of licensing and insurance upon request for every project — from roofing, plumbing, and electrical work to tile and stone and custom cabinetry. See all of our services. As a business built on more than 50 years of local reputation, we understand that trust has to be earned — and verified.

[Request a Free Estimate](tel:+15613792223) — or call (561) 379-2223.

*Sources: CBS12 News, WPTV, City of Port St. Lucie Police Department, National Insurance Crime Bureau, Florida Department of Financial Services (MyFloridaCFO.com), Florida Department of Business and Professional Regulation. This article is for general informational purposes and does not constitute legal advice. Homeowners are encouraged to verify current requirements directly with the applicable state agency.*