What Licenses Should a Restoration Company Have?
Last updated October 25, 2026
The short answer
State and Local Licensing
Water damage restoration often involves general contracting, electrical, plumbing, or mold remediation, and each of those trades may have its own license requirements. In Minnesota, the Department of Labor and Industry licenses certain contractors, and some cities, including Burnsville, have their own permit rules. You can ask a pro to show you their license and verify it with the issuing agency.
Licensing is not a single credential that covers everything. A pro may hold one license for general construction and another for specific tasks like asbestos removal. If the work touches your electrical system or plumbing, those trades have separate licensing in many areas. Always confirm that the license matches the job they will do.
- Check your state contractor licensing board
- Ask your city or county about permit requirements
- Confirm the license covers the specific trade needed
- Verify the license number with the issuing agency
- Ask if the pro holds any specialty licenses
Insurance and Bonding
While licensing proves a pro is allowed to work, insurance protects you if something goes wrong. General liability insurance covers damage to your property, and workers' compensation covers injuries to workers on your site. Ask for proof of both before any work begins.
Bonding is a separate matter and is not the same as insurance. A bond can provide a layer of protection if the pro fails to complete the job. Not every state requires bonding, so you may need to ask directly. Policies vary, and your insurer decides what is covered.
Permits and Inspections
Most water damage repairs that involve structural changes, electrical work, or new plumbing require a permit from your local building department. The pro should pull the permit before starting, and the work will need to pass inspection. Skipping permits can lead to fines and problems when you sell your home.
In Burnsville, permit rules are set by the city, and you can call the building department to ask which jobs need a permit. The pro should be willing to handle the permit process as part of the job. If they hesitate, that is a red flag.
Specialty Work and Extra Training
Some restoration tasks, like mold remediation or handling hazardous materials, may require extra training beyond a general contractor license. These are not the same as a state license, but they show the pro has specific knowledge. Ask what training they have for the exact type of damage you have.
If the work involves restoring electronics, artwork, or antiques, those are specialized fields with their own standards. A general water damage pro may not have the skills for those items. In that case, you might need to hire a separate specialist who has the right credentials for that specific work.
How to Verify a Pro's Credentials
Before you hire anyone, ask for their license number and proof of insurance. Then verify the license with your state licensing board and call your insurance agent to confirm the coverage is adequate. You can also check with your city's building department to see if any complaints have been filed.
Do not rely on a business card or a website. Take the time to make these calls, because the cost of a mistake can be high. If a pro cannot or will not provide proof of licensing and insurance, consider that a reason to look elsewhere.
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Call Now (952) 522-6744Frequently asked questions
Do I need a contractor with a license for water damage restoration?
In most cases, yes. Water damage repairs often involve structural, electrical, or plumbing work, which are regulated trades. Even if the job seems small, local codes may require a permit. Always ask the pro to show you their license and verify it with the state.
What happens if I hire an unlicensed pro?
You risk substandard work, no insurance coverage, and potential fines from your city. If the work is not up to code, you may have to pay to redo it. Your insurance may not cover damage caused by an unlicensed contractor, so it is safer to hire someone with proper credentials.
Can a pro pull permits for me?
Yes, a professional contractor can usually pull the necessary permits as part of the job. They should know local requirements and arrange the required inspections. If they are not willing to do this, that is a sign they may not have the proper credentials.
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