I had Stanley Steemer to come to my home to clean my carpet. I needed to hook up their machine to my water hose outside only to find out that when they turned on the water hose, water was leaking. Is this a sign that my pipes are busted?

Where exactly was the water leaking? Did you have a frost proof outside spigot?

To elaborate a bit: if water is leaking from where the hose meets the spigot, then that merely means that the washer just inside the hose is either faulty or missing. If, however, water is leaking from where the spigot body meets the house wall, that can indeed mean serious trouble.

Hope this helps,
Moishe