MyFloridaCode.com

Robert, I am not a lawyer so this should not be construed as legal or
official advice. If you are involved in such a matter, you should seek
competent counsel immediately. However as to your question, you said
that a registered contractor subbed to an unlicensed contractor. There
are miles of information missing in your post but I will say there are
two exceptions in Florida statute 489 whereby licensed contractors
(Division I) may subcontract to unlicensed contractors legally provided
the Division I contractor affirms that he or she is supervising them.
Therefore an unlicensed contractor may perform contractor will work
legally if it properly falls into one of these categories.

 

As for the insurance, how can an insurance company require mandatory
licensure when our statute itself does not require mandatory licensure
for all categories? And insurance policy is essentially contract. It can
be entered into by a licensed or an unlicensed contractor without
affecting the bases of the agreement absent some exclusion for
nonlicensed coverage.

 

That is all I can answer with the information that you have provided. I
can tell you that it is very common for insurance companies to provide
initial defense coverage to contractors when they are not properly
licensed (even in cases of Division I and Division II contractors that
clearly should be licensed under the law) but whether or not they
ultimately indemnify the insured is another matter entirely.

 

 

R.J.Koning - Director

Contractors Institute

rjkoning at contractorsinstitute.com
<mailto:rjkoning at contractorsinstitute.com> 

8301 Joliet Street

Hudson, Fl 34667

727-863-5147

 

 

From: codetalk-bounces at myfloridacode.com
[mailto:codetalk-bounces at myfloridacode.com] On Behalf Of L&H
Contracting, Inc.
Sent: Friday, April 23, 2010 2:56 PM
To: codetalk at myfloridacode.com
Subject: [Florida Code Talk] Insurance claim/unlicensed contractor

 

What are the ramifications? A registered contractor subs to an
unlicensed (insured) subcontractor using a contract. A claim arises
against the registered contractor for work done on a commercial
building. The registered contractor then contacts the unlicensed sub and
involves them and his insurance company in the claim. Taking into
consideration FS489.128 that this contract would be unenforceable. How
would the unlicensed contractors insurance co reply, if it was known
they were unlicensed? And why would an insurance company issue insurance
to an illegal company? Thanks for the input.

 

 

Robert Harvey
L & H Contracting, Inc.

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