Blog Post

3 Trade License Tracking Benefits You Can’t Miss Out On

License Monitoring | November 7, 2022
Trade license tracking benefits

It can be easy to lose sight of trade license tracking when managing the compliance of your network of contractors. However, several trade license tracking benefits directly result from keeping a close watch on this critical business component.

Trade license tracking can be challenging. Requirements and regulations vary between each state and the type of work performed by the contractor. 

Defining A Trade License

Before addressing trade license tracking benefits, it is first necessary to understand what a trade license entails.

A trade license qualifies a person or company to perform specific services based on their skills and abilities. To obtain a trade license, an individual or a company must meet eligibility requirements that include but are not limited to education and work experience inside of a specific trade field, hold appropriate business insurance, and have personal references within the trade.

Trade licenses should not be mistaken for business licenses. A business license is required to operate a business within certain states, counties, and cities.

However, failure to acquire a trade license is where companies have the most significant exposure to risk.

What Are The Benefits Of Trade License Tracking?

#1. Mitigate Legal Risk And Liability

Trade license tracking benefitsThe first trade license tracking benefit is a lowered exposure to legal liability and risk. Government agencies and trade associations developed regulatory trade licensing to protect the public’s health, safety, and welfare. Increasingly, states, counties, and municipalities find themselves fighting fraud committed by individuals who offer services, collect payments, and then fail to complete the job. Many sting operations have been conducted to identify these types of unlicensed individuals.

While your contractors are usually not committing fraud, governments are actively searching for unlicensed contractors and issuing citations for aiding and abetting those who hire them for jobs. If a company has a pattern and track record of hiring unlicensed contractors, a state attorney general may file corporate negligence charges against the business.

#2. Distinguish Revoked Or Suspended Trade Licenses

Secondly, following trade licensing regulations allows you to identify licenses that have been suspended or revoked. If a licensed contractor has received complaints against them involving a statutory violation, their license may be suspended or revoked.

Often, filed complaints involve contracted jobs not competently or satisfactorily completed. In these cases, suspended or revoked trade licenses can quickly be found if a company has properly tracked trade licenses.

#3. Lower Financial Risk

A third trade license tracking benefit is reduced financial risk. Adequately trained and licensed contractors are less likely to make costly mistakes on a job site. As a result, you will experience a noticeable decline in complaints and claims, saving your company time and money. It is also important to note that a contractor’s license can be suspended or revoked if the individual or their company does not adequately maintain continuing education courses and credits.

Summarizing Trade License Tracking Benefits

Implementing license tracking as a part of your compliance plan will reduce the potential for liability and claims and ensure that you have quality contractors who will meet a higher level of legal compliance and further protect your company brand.

Contact us today to learn more about how our full-service tracking system can help you validate current licenses and ensure no lapses in expiration.

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 is an industry leader in risk management and specializes in compliance programs that meet the complex challenges of working with networks of contractors, vendors, and employees. PlusOne Solutions works to protect companies from possible legal, financial, and reputational risks associated with working with contractors while also creating safer work environments. To learn more, visit

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