Hiring a contractor in Minnesota: what the license means, and what it doesn't
Minnesota licenses the trades where bad work hurts people: electrical, plumbing, residential building and roofing, and a list of specialty credentials from boilers to elevators. This page explains what the license classes on this site actually mean, the two checks most homeowners skip (insurance and workers' compensation), and the recovery fund that exists precisely because licensed contractors sometimes fail their customers.
What the license classes mean
The distinction that matters most: business licenses (the company you hire) versus individual licenses (the people on the ladder). You contract with a licensed business; that business is required to employ licensed individuals.
Electrical
- Electrical contractor (Class A): the business license. A company needs this to contract for electrical work, and it must employ a licensed master electrician who is responsible for the work.
- Master electrician: an individual who passed the master exam; plans, lays out, and supervises the work.
- Journeyworker electrician: an individual licensed to wire and install under a contractor.
- Power limited technician: an individual licensed for low-voltage systems: alarms, audio, data, control wiring.
Plumbing
- Plumbing contractor: the business license a company needs to contract for plumbing work; it must employ a licensed master plumber.
- Restricted plumbing contractor: the same business license, valid only in cities and towns with fewer than 5,000 residents.
- Master and journeyworker plumbers: the individuals doing and supervising the work.
- Backflow prevention tester / rebuilder: certifications for the valves that keep contaminated water out of drinking water.
Residential building and roofing
- Residential building contractor / remodeler: the license for companies building or remodeling homes. Required for most contractors who work in more than one specialty trade.
- Residential roofer: the license roofing companies need. After a hailstorm, this is the license to check; our sister site MN Hail Buddy covers storm-repair rights in depth.
Whatever the trade: check the license before you sign, and match the name on the license to the name on the contract. A crew "working under" someone else's license number is a red flag.
Verify insurance, and yes, workers' comp
A license is necessary, not sufficient. Before work starts, ask for a certificate of insurancenaming the contractor's general liability carrier, and confirm it is current by calling the agent listed on the certificate, not the contractor.
Then the check almost nobody does: workers' compensation coverage. Minnesota law requires nearly every employer to carry it. If an uninsured contractor's worker is hurt on your property, you can end up in the middle of the claim. The state runs a free lookup of every employer's comp coverage: inslookup.doli.state.mn.us. Search the business name; if nothing comes up and the contractor has employees, ask why before anyone climbs a ladder. (Sole proprietors with no employees can be legally exempt, which is worth confirming in writing.)
This site is built by a Minnesota workers' compensation attorney; of every check on this page, this is the one that comes from watching it go wrong. About the author.
The Contractor Recovery Fund
Minnesota keeps a fund, paid into by licensed contractors, that compensates homeowners for direct out-of-pocket losses caused by a licensed residential building contractor's or remodeler'sfraud, deceptive practices, or failure to perform (Minn. Stat. § 326B.89). In its 2025 fiscal year the fund approved about $2.5 million across 92 homeowner claims.
- It covers work that requires a residential building contractor or remodeler license, under a contract directly between you and that licensee. Work by electricians, plumbers, or unlicensed contractors is generally not covered, which is one more reason the license class on the contract matters.
- You need a final court judgment (or an eligible order) against the licensee first, and you must apply to DLI for payment from the fund.
- Payment caps apply: currently up to $100,000 per homeowner, and $550,000 total per contractor across all claimants. When claims against one contractor exceed the cap, payments are prorated.
Details and application forms are on DLI's Contractor Recovery Fund page. If your loss is large, talk to a construction attorney before the judgment, not after: how the case is pleaded can affect fund eligibility.
Common questions
Does a license mean the contractor is good?
No. A license means the business met the state's exam, bond, and insurance requirements and is accountable to a state board. It says nothing about workmanship or price. It does mean there's a regulator to complain to and, for residential contractors, a recovery fund behind the license.
Can I check a license for free?
Yes. The state's lookup is free, and this site's checker searches the same nightly file across every trade at once. Neither stores your search.
What if my contractor's license expires mid-project?
Unlicensed work is illegal in the licensed trades, and inspections can fail on it. Watch the license on your contract with a free alert and raise it with the contractor immediately if it lapses.
Check a license now →
One search across every Minnesota trade credential. Anonymous, never stored.
Buying a house? Read this first →
Minnesota licenses no home inspectors. The honest page.
MN Contractor Buddy is an independent educational resource built by a Minnesota attorney. It is not a government agency or a law firm, and nothing on this site is legal advice about your situation.Sources: Minn. Stat. § 326B.89; DLI Contractor Recovery Fund FY2025 annual report; DLI licensing pages. Verify current law and license status with DLI.