Black Market GL Policies
Black Market GL Policies
Don't worry abut getting paid, most of them pay so little ..they paid us $20 and billed the store $250 for the service call.
Consumer Reports, and JD Power & Associates both publish studies on customer & vendors issues with Home Warranty services. While vendor General Liability (GL) insurance is ignored in these consumer studies, Home Warranty and less vilified Facility Maintenance companies may be using the same uninsured-vendor base.
Proof of vendor "General Liability" (GL) is mandatory for most of these providers, a traditional barrier to entry, but since licensing requirements vary by State some providers are using a mixture of un/licensed vendors.
In States with licensing exceptions, such as the $500 limit in CA, providers can toss minor services to bottom feeders who troll craigslist, operate out of their trunk, live under a bridge, or at home with mom & dad.
My first GL-insurance agent specialized in Spanish-speaking clients, landscapers, roofers, contractors, and house keepers. Policy underwriters seemed to accepted (GL) insurance premiums from anybody, regardless of licensing, or undocumented illegals.
Demanding these underwriters prove my coverage during renewal finally got one to admit, "where unlicensed contractors are concerned their is no law against collecting premiums for policies that may be found invalid." It appears, years of legal president from both State-civil courts and Government-contract disputes have become unified against any obligation to hear legal claims, where unlicensed contractors are concerned.
If liability for such cases is only settled by property owners enduring expensive court battles against the bad-faith insurers who deny claims, the end result is the insurance industry has enriched itself with premiums from invalid GL policies, used to qualify unlicensed contractors for work. When hacks present these invalid policies to the trade-services market, it naturally gets flooded with unlicensed-bottom feeders, traditionally associated with underground economies.