Home › Guides › Licensed, insured and bonded: what they actually mean when hiring a pro
Guide"Licensed, insured and bonded" gets thrown around in home-service ads like a magic phrase, but most people don't know what each actually means — or which ones matter for their job. Here's a plain-language guide, so you know what you're really getting and what protects you if something goes wrong.
A licence means the pro has met the training, testing and legal requirements to do regulated work — and for trades like electrical, plumbing and gas, it's legally required. A licence protects you by ensuring the person knows the code and can pull permits. For regulated work, 'licensed' isn't a bonus; it's the baseline you should never skip.
Liability insurance covers damage the pro causes to your property, and their own injuries on your job, so you're not on the hook. An uninsured pro who damages your home — or gets hurt on your property — can turn into your financial problem. 'Insured' is what protects your wallet when an accident happens on the job.
A bond is a financial guarantee that provides recourse if the pro fails to complete the work or doesn't meet obligations. It's most relevant for larger contracts. Think of it as a backstop: if the pro doesn't deliver, there's a mechanism to recover some losses. Less universal than licensing and insurance, but reassuring on bigger jobs.
Regulated trades — electrical, plumbing, gas, HVAC — legally require licensing, and you should always confirm it. Insurance matters for any work where property damage or injury is possible, which is nearly all in-home work. Bonding matters most for larger contracts and renovations. Match the level of verification to the risk of the job.
You can ask for licence numbers and insurance certificates and verify them yourself — or use a platform that does it for you. On Genie, licensing and insurance are verified before a pro can take regulated work, and every pro is background-checked for in-home jobs, so the verification is already done when you book.
For regulated trades, insist on licensing — it's the law and your safety. For nearly any in-home work, insurance protects you from damage and liability. For big contracts, bonding adds a backstop. The easiest path is booking where these checks are built in, so 'licensed and insured' is a fact, not a claim in an ad.
Licensed means the pro is qualified and legally allowed to do regulated work; insured means their liability insurance covers property damage and injuries; bonded means there's a financial backstop if they fail to complete the work.
For regulated trades — electrical, plumbing, gas, HVAC — yes, it's legally required and protects your safety. On Genie, licensing is verified before a pro can take that work.
If an uninsured pro damages your property or is injured on your job, it can become your financial problem. Liability insurance protects you — and it's verified on Genie.