DBPR Raising Awareness of Unlicensed Activity

The Florida Department of Business and Professional Regulation is launching an educational campaign, posting 34 billboards throughout the state. The billboards are aimed at educating the public about unlicensed activity. There were over 1,700 complaints about unlicensed construction work alone last year in Florida.

In addition to proving their competence, licensed companies have higher expenses which are necessary to protect the businesses, consumers and employees. Some of these expenses include liability insurance, workers comp and continuing education. A company following the rules cannot compete with a fly-by-night who does not have the same expenses. Unlicensed activity not only takes customers away from companies who are following the rules, but also exposes consumers to risk.

The increased risks associated with hiring an unlicensed person or company include losing your deposit, shoddy  workmanship, difficulty selling your home, local code violations and fines, up to a $5,000 fine from the state(to the consumer), injury and death. The financial risks are every bit as real as the physical risks. If a consumer hires an unlicensed person, they can be considered that person's employer and be held liable for any injuries suffered by the worker. The consumer does not likely have the proper insurance to cover this type of situation and could be held personally liable for hundreds of thousands or millions of dollars.

According to Ed Marchiselli, founder of consumer advocacy company AsktheSeal.com, " There are two big problems out there. One is consumer awareness. If consumers understood the physical and financial  risks associated with hiring an unlicensed contractor, most would not do it. The second is that many companies claim to be licensed and insured when they are not. They print whatever they want on their business cards, advertisements and literature. The fly-by-nights often work harder at looking reputable than the actual reputable businesses do. Consumers often think they are hiring a licensed and insured company when they are not."

Marchiselli also stated, "It is very important for consumers to do their own homework and not just take someone's word for it. Consumers can find out which trades require a license and verify those licenses at the DBPR website . They can also request proof of insurance directly from the contractor's insurance company. The company will initiate the request to the insurance company, but it is a very simple process and any legitimate company should be happy to do it."

Beyond making sure the company is properly licensed and insured, the other concerns would be getting a fair price, checking the company's customer service and complaint record and knowing who the company is sending to your home or business. AsktheSeal.com annually verifies licenses, liability insurance, workers comp and customer service record. It also performs annual criminal background checks on the owners and the employees interacting with the public. Employees who pass the annual background check are issued photo IDs and the company can initiate an email from AsktheSeal.com with a photo and verification of background check. According to Marchiselli, "Most of the service companies who claim to background check employees don't do it at all or do them incorrectly, often running an instant internet search or only checking the county of residence." AsktheSeal.com is a free service to consumers and they do not have to enter any personal information in order to find a company with the Seal of Approval or verify a company's Seal of Approval.