Key Verified Owner Resource
Licensing & Insurance: What Owners Should Check
Licensing and insurance are important pieces of due diligence, but they answer different questions.
Licensing
Licensing requirements vary by jurisdiction and by the services a company or individual provides. Ask what license or registration applies and verify it with the relevant public authority when possible.
License status is time-sensitive
A license can expire, be renewed, change status, or be associated with a different legal entity. When licensing matters to your decision, check the current record rather than relying on an old document or website statement.
Insurance
Insurance helps address certain risks, but the existence of coverage does not mean every loss is covered. Ask what coverage the company maintains, the applicable limits, and whether documentation can be provided.
Ask what is actually being verified
“Insurance confirmed” and “licensed” can be vague statements unless the underlying item and date are clear. Prefer information that identifies what was reviewed and when.
Keep your own records
For important engagements, retain copies of agreements, licenses, insurance documentation, and other key records. Re-check time-sensitive information when renewing or materially changing the relationship.