When you have spoken with certain contractors, you have likely heard some say they are licensed, bonded and insured. Here is a very informative article stating exactly what insurance a home improvement contractor should have and how it can affect you if something goes wrong and they do NOT have it!
You can read the full article on www.arizonagroup.com
Whenever considering any contractor, it is advisable to check with the AZ Registrar of Contractors to see that your choice is adequately licensed and insured.