Hiring an unlicensed or uninsured drywall contractor can leave you liable for injuries, property damage, and unfinished work with no recourse. Before signing any contract, you need to verify credentials that prove the contractor can legally operate and cover costs if something goes wrong. Here's exactly what to check and where to find that information.
Check Your State's Licensing Board
Drywall contractors must hold a valid license in most states, though requirements vary. Start by visiting your state's construction licensing board website—typically run by the Department of Consumer Affairs, Division of Labor, or equivalent agency.
Search for the contractor's name and license number. Legitimate sites let you verify:
- License status (active, suspended, expired, or revoked)
- License type and classification
- Issue and expiration dates
- Any disciplinary actions or complaints
If a contractor claims they don't need a license because they're "small" or "just helping out," verify this with your state. Many states require licenses for any drywall work above certain dollar thresholds (commonly $500–$2,000), regardless of company size.
Verify General Liability Insurance
General liability insurance covers property damage and bodily injury claims on the job. Request a Certificate of Insurance (COI) directly from the contractor. This document shows:
- Insurance company name and policy number
- Coverage amounts (typical minimums are $300,000–$1,000,000 per occurrence)
- Policy dates and expiration
- Your address listed as an additional insured (critical for protection)
Call the insurance company's number on the certificate to confirm it's legitimate—don't use contact info the contractor provides. A quick 5-minute call prevents fraud. The policy should remain active throughout the entire project duration, with at least 30 days' notice before cancellation.
Check for Workers' Compensation Coverage
If the contractor employs workers, they must carry workers' compensation insurance in nearly all states. Uninsured workers injured on your property could sue you directly instead of the contractor.
Ask for proof of current workers' comp coverage. In some states, you can verify this through the state's Department of Insurance or labor board using the contractor's business name or license number. Coverage amounts vary by state but typically range from $100,000 to $500,000 per employee.
Review Complaint and BBB History
The Better Business Bureau (BBB) database shows complaint patterns, responses, and resolution rates. Search for the contractor's name and location. Red flags include:
- Multiple unresolved complaints about incomplete work
- Damage claims that weren't addressed
- Consistent payment disputes
- Low ratings without detailed explanations
Cross-reference this with Google Reviews, Yelp, and industry-specific sites. Pay attention to recent complaints (last 1–2 years) over older ones—contractors improve or decline over time.
Request References with Verification Details
Ask for at least three recent drywall projects (completed in the last year). When you call references, ask specific questions:
- Did the contractor finish on schedule?
- Was the drywall taped, mudded, and sanded to your satisfaction?
- Were there any insurance claims or accidents?
- Would they hire this contractor again?
Verify the reference actually exists by asking for the project address, then confirm the contractor did work there. Some contractors provide fake references, so this extra step matters.
Ask About Bonding
A performance bond (typically 5–10% of the project cost) guarantees the work gets completed even if the contractor abandons the job. Not all drywall contractors carry bonds, but it's excellent protection for larger projects ($10,000+). If bonding is available, request proof from a surety company.
Document Everything in Writing
Once you've verified credentials, include license and insurance information in your written contract. The contract should specify:
- Contractor's license number and expiration date
- Insurance policy numbers and coverage amounts
- Project scope, timeline, and payment schedule
- Start and completion dates
Never pay in full upfront. Standard practice is 30–50% down, with the remainder paid upon completion and inspection.
Frequently Asked Questions
Q: What if a drywall contractor says they're licensed in another state and doesn't need a local license? A: Each state sets its own licensing rules. Even contractors licensed elsewhere typically need to be licensed or registered in your state to legally operate. Contact your state's licensing board to confirm requirements before proceeding.
Q: How much should drywall work cost, and does license/insurance affect pricing? A: Drywall finishing typically costs $1.50–$3.50 per square foot depending on complexity and location. Licensed, insured contractors charge slightly more (usually 10–15%) because they carry overhead costs, but this protects you legally.
Q: Can I hire an unlicensed contractor if I get a waiver? A: No. Waivers don't eliminate your liability if someone is injured or property is damaged. You're responsible regardless of what you sign.
Compare and verify multiple drywall contractors on Mercoly to find licensed, insured professionals in your area before making your final hiring decision.