Can Online Trade License Verification Be Efficient and Accurate? We Have the Answer

License Monitoring | March 10, 2023

When managing contractor networks to deliver, service, install and repair your products, there are invariably going to be required trade licenses that network companies need to hold. We should note that this may also include a business license or other required certifications that are required to effectively and professionally do the job for which they have been engaged. As an organization, it is your responsibility to ensure these are in place, and that you know you are working with reputable and properly licensed companies and that can be a huge task. You may even have asked yourself, can online trade license verification be efficient and accurate? Well, we have the answer.

Trade License Verification: What You Should Know

License and certification verification can be an arduous task for an organization so looking at the option to outsource may be a worthwhile exercise. Two of the main concerns tend to be whether the process will be efficient and if the results are accurate. We are happy to be able to answer “yes” to both of these common questions.

Ensuring that a contractor has a trade-specific license usually means that they’ve completed a minimum number of hours of work as an apprentice and that they passed standardized tests to be qualified to perform a specific type of work/trade. This will ensure a higher quality of work performed for the client. This also means a better customer experience by having the work completed the right way, to begin with.

Many license-issuing agencies will ensure that other criteria are met and maintained during the life of the license, such as having insurance coverage and bonds. Ongoing license tracking to ensure they are not suspended/revoked is another way you can be notified when issues arise with a contractor. Some states legally require you to use a licensed contractor to perform service work. Not doing so, can expose you to additional risk and liability. Should a problem arise, a contract may not be legally enforceable, your organization may have to assume financial responsibility for faulty work, or cover injury costs in the unfortunate event that the contractor is injured on the job.

The first step when dealing with license verification, the all-encompassing term we will use in this blog, is to be sure to know which licenses and certifications you need to verify. Once you know this information, it is well advised to work with a partner, like PlusOne Solutions, for your license verification needs. License verification can be extremely complex as there is no single database for tracking or obtaining this information. Business licenses may be held at the state or county level, professional trade licenses may be at the city, county, and state levels and certifications could be granted by a single national body. There may also be overlapping license requirements, depending on where the work will be done and where the licenses need to be held.

A strong partner will be able to ingest the required information and the required details of your contractor network companies and begin to report who complies with the requirements you have set. Once these two pieces of information are brought together, the task begins to understand where the verification must occur, the data points provided and which need to be tracked, and how to stay on top of licenses that carry expiration dates.

Working with a partner who has experience in this area means they will have many of the resources, knowledge, and processes in place to ensure the license tracking process is efficient. This likely includes integrations and API processes with licensing entities and established connections to obtain the required details. Verifications should always be done at the source of the license, meaning where it was issued, so that the data is as accurate and up-to-date as possible. When technology is part of the process, the data is not subject to human transcription error or other unintended opportunities which may impact the quality of what is provided.

The Role Technology Plays

Our process makes every attempt to use the most modern and advanced technology available to verify the licenses of contractors. Additionally, PlusOne performs continuous monitoring for suspended and revoked licenses. Meaning that each month, we verify that the license in question hasn’t been suspended or revoked. Rather than waiting until licenses expire, we begin our attempts to verify online license renewals starting 14 days before the expiration date and continue to monitor 14 days past expiration until renewed. 

The PlusOne Solutions Advantage

Perhaps one of the most significant advantages of an online license verification process is the fact that it is much quicker than one-by-one manual verification done by an individual. The advances in technology, as noted above, continue to improve the efficiency of the process which means greater protection and risk mitigation for the organizations we work with. Contact us today to learn more about how we can help.

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.