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can I let another company use my license – they want to give me the monitoring  
September 18, 2021
can I let another company use my license – they want to give me the monitoring
          A licensed company from another state wants to use our license to do alarm work for one of their customer’s employees who happens to live in our town.  They want to  do the installation and want us to provide the monitoring, so we’d pick up a monitored account and probably some work from them along the way.  Can I do this arrangement if I get them to list my company as an additional insured on their policy?
Name withheld
          Answering a question with another question, this comes to mind.  Would you let your buddy use your driver’s license to drive around your state for a few weeks if he promised to give you the car when he was done?  How about if he names you on his auto insurance policy?
          The company that’s licensed in another state and not licensed in your state, is just that, unlicensed.  An unlicensed company cannot engage in the alarm business in your state.  It can’t just put your license number on its proposal or contract or whatever it intends to use. 
          Getting named on an insurance policy isn’t going to help a bit.  The carrier may step in if you get sued by the customer for the work performed by your buddy but it’s not going to help you when the licensing agency wants to suspend or revoke your license or the Attorney General wants to fine you for aiding and abetting an unlicensed contractor, or the District Attorney wants to prosecute you for the same conduct. 
          There are ways to make the arrangement work.  You could perform the work; you can employ the other contractor’s employees for the short time they do the work [make sure you get them covered by your license as required by your jurisdiction].   
          There are perfectly legitimate ways to license other companies also.  Perhaps your state permits you to license more than just your one company.  If so then your buddy only has to pay for your license application.  If you do that you’ll need a Qualifier Agreement and you’ll need to read it and comply with all the licensing requirements.

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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301