4 Signs You Need a Contractor License Tracking Service       

License Monitoring | April 17, 2023

As an organization that engages with outside contractors to deliver, service, install or repair products for your customers, you are closely linked to those individuals. This means that ensuring they have the proper licenses should be a key piece of your risk mitigation strategy. While that seems simple enough, keeping track of the licenses and certifications for thousands of contractors can be overwhelming. With different requirements in each state, it can be difficult to stay on top of everything. That’s where a contractor license tracking service comes in. Here are four reasons you need a contractor license tracking service:

Ensure You Engage with Reputable Companies

If your organization utilizes a company or servicing partner who is not properly licensed, and an issue occurs, it will be YOUR organization’s reputation and expense that takes the hit. Ensuring you are working with properly licensed companies means verifying their registration with the appropriate Secretary of State records and any local – city or county – registrations as well. If there is an issue, it is best to find out before any work is done.

Avoid Penalties and Fines

In some industries, there are specific licenses – gasfitter, freon abatement, master plumber – that must be maintained by companies who you may engage with. If these licenses are not in place, and an issue occurs, you may find that insurance claims are rejected and other small claims or civil claims will be filed against your organization and not the servicing company at issue. There may also be other legal risks to operating with unlicensed contractors. 

Customer Expectations

When your customers decide to support your organization with their business, they have a reasonable expectation that they are dealing with a professional organization they are familiar with. Customers don’t generally understand, or frankly even care, that they are really dealing with a contracted service network – they view the relationship with your organization – and therefore maintain expectations that you are only providing vetted, professional, and reputable individuals to complete the business relationship with them. If this is not the case, they don’t hate on “Bob’s Appliances” but will rather tag your larger, more well-known organization as the culprit. 

Save Time and Resources

Each state, and sometimes even city and county levels, have its own requirements by the industry for the licenses and certifications that must be in place. Staying on top of these can be a daunting task as expiration dates and registration requirements may vary. Having focused support to manage this process is a great way to address this task. They may also be able to provide insight into regulatory changes to help improve your compliance. Likewise, since the tracking service will focus on this task exclusively and not as part of an already busy desk, as may be the case when managed internally, they will be able to stay on top of deadlines and other regular verifications that may be required. Your organization can then focus those efforts on another, more business-focused area. 

When your licenses are verified in a timely manner, the data is easy to access, and you have confidence in the compliance of your contract network, you are also able to capitalize on other opportunities which may present themselves. Many contracts your organization engages in will require specific licenses or certifications before they can work on their projects. By having a license tracking service, you’ll never miss out on potential business due to expired or missing licenses because that information will be readily available.

In conclusion, a contractor license tracking service is essential for any organization looking to stay compliant, avoid penalties and fines, save time and resources, and increase business opportunities. Don’t let licensing requirements hold back your business – invest in a license tracking service today!

Contents are provided for information purposes only and should not be construed as legal advice. Users are reminded to seek legal counsel with respect to their obligations and use of PlusOne Solutions services.

About PlusOne Solutions

PlusOne Solutions has been an industry leader in the risk management field by specializing in compliance programs that meet the complex challenges of geographically dispersed contractors, vendors, and employee networks. PlusOne Solutions protects companies from possible financial, legal, and reputational risks associated with contractor and vendor relationships while creating safer work environments. To learn more, visit https://www.PlusOneSolutions.net.