What does Google check before it gives you the badge?
It depends on your trade and where you work. Google says screening "varies by business category and location and may include background, business registration, insurance, and license checks, and minimum review requirements." For HVAC, Google's requirements page lists business and owner background checks, business registration, general liability insurance and state license checks, each marked for select users, plus background checks for technicians because HVAC is an urgent category. The background check doesn't include a credit check.
Verification isn't one-and-done. Google says "advertisers are regularly re-evaluated," and skipping a requested review can mean "the loss of their badge, a pause on their ads, or account suspension." Keep your license and insurance documents current so a renewal doesn't take your ads offline. Once Google moves your account into Google Ads, it says completed verification and the badge carry over and insurance and license reverification are no longer required; any further business check appears as a notification in Google Ads. Our Local Services Ads page covers the move.