Is ‘Licensed, Bonded, and Insured’ Enough When Hiring an Electrician?
You’ve seen it everywhere — ads and websites that proudly say a company is “Licensed, bonded, and insured.” It sounds reassuring, but when it comes to electrical work, this phrase doesn’t always mean what most people think it does.
What the Phrase Actually Means
When a company says they’re “licensed, bonded, and insured,” it often sounds like a badge of expertise. In reality, these are basic, bare minimum legal requirements for operating a business — not proof of technical ability.
Licensed → Usually refers to a business license, the paperwork that allows a company to legally exist and collect payment in a city or state. It does not mean the people on the job site are licensed electricians.
Bonded → A simple financial guarantee meant to protect customers if the company fails to complete work or causes damage.
Insured → Liability and worker’s compensation coverage — protections that every legitimate business must carry.
Yes, being “licensed, bonded, and insured” is important. But it’s really just the starting line — it doesn’t tell you anything about the actual skill, training, or authority of the person working on your home.
In some cities and counties across the Ozarks — particularly rural areas in Southwest Missouri — local government does not require licensing to perform electrical work. That means it can be perfectly legal for someone to own and operate an “electrical contracting” company without employing a single licensed electrician, and with zero formal training.
Why “Licensed Contractor” ≠ Licensed Electrician
Some homeowners assume that a licensed contractor or general contractor can substitute for or even “outrank” an electrician. That’s not true.
Electrical work is a specialized trade, and the only people authorized to perform it are:
Licensed journeyman electricians (working under a licensed master), or
Licensed master electricians.
Becoming licensed takes years:
Journeyman license → 4 years of supervised work experience, formal classroom training, and passing a rigorous exam on electrical code.
Master license → At least 2 more years as a journeyman in good standing, additional training, and passing another exam that proves deep technical knowledge.
This training and testing put licensed electricians at the top of the trade — and it’s the only path that authorizes someone to perform electrical work legally and safely.
Levels of Electrical Licensing
To clear up confusion, here’s what each level of electrical licensing actually means.
Apprentice electrician → May hold a license but can only work under the supervision of a journeyman or master.
Journeyman electrician → Authorized to perform work, but only under a master’s supervision.
Master electrician → The highest license level, with the authority to oversee projects, supervise journeymen and apprentices, and pull permits.
Side note: If someone simply calls themselves an electrician, they may not be licensed. If someone refers to themselves as a “licensed electrician,” they’re often referring to an apprentice license. Journeymen and masters usually specify their license level.
Red Flags to Watch Out For
“Jack of all trades” → Be cautious if someone offers electrical or plumbing work alongside drywall, painting, roofing, or handyman services. Even if they say they’re “licensed, bonded, and insured,” that doesn’t mean they’re qualified for specialized trade work.
Experience instead of credentials → If someone says, “I’ve been doing electrical for 20 years,” but doesn’t state their license level, it’s a red flag. Claims like that can’t be verified without licensure — you simply have to take them at their word and hope they know what they’re doing.
Here’s the difference: experience can exist without licensure, but licensure cannot exist without proven experience. To even qualify for the journeyman or master exam, electricians must provide signed documentation of years of work supervised by a licensed master electrician, along with formal training. That documented experience is then tested through examination and reinforced with continuing education to stay current with updates to the National Electrical Code.
Licensure turns “experience” into something legitimate, verifiable, and accountable. Without it, there’s no way to know if those “20 years” represent safe, code-compliant work — or just two decades of cutting corners.
Why This Matters
Licensing isn’t just about proven knowledge and verified experience. It’s also about legal authority and accountability.
Only a licensed master electrician can pull the permits required for major projects like replacing an electrical panel, rewiring a house, or upgrading a meter box.
Licensed journeymen and masters have a vested interest in ensuring work is safe and code-compliant. If something goes wrong, the state electrical licensing board can investigate. If the work is found to violate code, they face fines or even revocation of their license.
Their career and livelihood depend on protecting your home and family with work performed to the highest standards.
By contrast, the “jack of all trades” who claims to “do electrical” is accountable to no one. The licensing board has no authority over them, and if they cut corners, there’s no professional oversight or disciplinary process.
The Bottom Line
When you see “Licensed, bonded, insured,” know that it’s not the whole story. Those are basic business filings — important, but not proof of who’s actually touching your electrical system.
For real electrical work, the only licenses that matter are journeyman and master electrician licenses.
Always ask:
Who will actually be performing the work?
What license level do they hold?
Can they pull the proper permits?
Because when it comes to your home’s electrical system, you don’t just want an “electrician.” You want someone who is qualified, tested, accountable, and authorized — because when it comes to electricity, there are no safe shortcuts.