Hiring a contractor who is not licensed or insured is definitely not a good way to cut costs on your next home improvement project.  The recent article Are Your Pros Insured, by This Old House brings up some very good points, including examining your own homeowner’s insurance policy. For more information on WA State contractor’s license, bond, and insurance requirements please refer to Contractor Hotline’s archived e-newsletter –  Licensed, Bonded & Insured – What Does That Really Mean?