In the aftermath of last month’s hailstorms, North Dakota’s Construction Compliance Task Force has begun aggressively checking construction sites to ensure that contractors are insured and licensed.
Investigators from Workforce Safety & Insurance (WSI), the Attorney General, Secretary of State’s offices and Job Service North Dakota will be checking to ensure that contractors have the proper licensing, worker’s compensation coverage and unemployment insurance for their workers.
Out-of-state individuals, businesses and contractors need transient merchant licenses from the Attorney General’s office, must be registered with the Secretary of State’s office and have both WSI workers’ compensation for their workers and unemployment insurance coverage from Job Service North Dakota while conducting business in North Dakota.
Violators face fines, imprisonment, or both. In addition, unsuspecting consumers who hire unlicensed and uninsured contractors may be held liable for the damages or injuries that occur on their property.
To operate in North Dakota, a contractor must be licensed with the Secretary of State’s office for work that costs more than $2,000. To get that license, they must have liability insurance and coverage from WSI. Failure to do so is a class A misdemeanor. Contractors also must secure unemployment insurance from Job Service. Out-of-state firms must obtain a transient merchant’s license from the attorney general’s office and post a bond that can be used to cover claims by a client. If they don’t, it is a class B misdemeanor.
To determine if a contractor is registered with the state, contact the Attorney General’s Consumer Protection Division at (800) 472-2600.
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