What Every Contractor Should Know Before Lending Their License
In Florida, it’s common for licensed contractors to be asked to “qualify” a construction company. Maybe it’s a friend, a former employer, or a business partner offering a monthly fee in exchange for the use of your license.
Sounds like easy money, right?
But here’s what many contractors don’t realize: when you agree to qualify a company, you are potentially putting your license, your livelihood, and your personal assets on the line. Florida law holds qualifiers legally responsible for much more than just paperwork.
Before you say yes to qualifying a company, make sure you understand what you’re signing up for—and how a properly structured Qualifier Agreement can limit your exposure.
⚖️ Florida Law Holds Qualifiers Accountable
Under Florida Statutes Chapter 489, a qualifying agent is not just a symbolic figure. You are the license holder legally responsible for the company’s construction activities. That includes:
- Pulling permits
- Supervising work
- Ensuring code compliance
- Managing financial responsibility
- Overseeing jobsite conduct and subcontractors
Even if you’re not involved in the day-to-day operations, Florida law presumes you are—unless your agreement and DBPR filings say otherwise. In fact, unless the company designates a separate Financially Responsible Officer (FRO) through an approved application with the Department of Business and Professional Regulation (DBPR), the qualifier may be held personally responsible for the financial liabilities of the company as well. Without that formal designation, the qualifier is presumed to be both the supervisory and financially accountable party for all licensed activities.
❗ Yes, You Can Be Personally Liable
As a qualifying agent, you may be personally named in:
- Customer lawsuits for defective work or contract breaches
- DBPR or CILB disciplinary actions for code violations, unlicensed work, or abandonment
- Wage or employment claims filed by workers on jobs you didn’t manage
- Third-party injury or property damage lawsuits tied to jobsite incidents
Courts and regulators won’t care whether you “actually knew” what the company was doing. If you’re listed as the qualifier and you didn’t properly supervise or limit your role—you may be held responsible.
🛑 What Makes Liability Worse?
You’re at the highest risk when:
- There’s no written agreement defining your responsibilities
- You’re not listed as an officer or employee of the company (but still qualify it)
- You have no communication about projects, permits, or crews
- You’ve qualified multiple companies without express DBPR approval
- The company stops paying you, but you’re still listed as the qualifier
In short: lack of documentation equals risk.
📄 How a Proper Qualifier Agreement Can Protect You
At a minimum, your agreement should:
- Define your role (active or passive) and whether you’re an officer or W-2 employee
- Specify the type of projects and scope of work you are authorizing
- Require the company to provide insurance, name you as an additional insured, and indemnify you from claims
- Clarify termination rights and reporting obligations to DBPR
- Include procedures for how you’ll be notified about permits, violations, or incidents
Even then, the agreement is only as good as its legal precision. That’s why this isn’t something to write yourself or copy from a template.
👨⚖️ Our Firm Helps Qualifiers Limit Their Liability
At Douglas Law Firm, we work with license holders across Florida to:
- Review proposed arrangements before you agree to qualify a company
- Draft tailored Qualifier Agreements to reduce your exposure
- Advise you on DBPR compliance and corporate structure
- Help you exit risky relationships while protecting your license
Too often, contractors call us after something has gone wrong. We prefer to be involved from the beginning—when we can still protect your rights.
✅ Ask Yourself Before You Qualify a Company:
- What will I be responsible for?
- What happens if the company gets sued?
- Can I get out if I stop getting paid?
- Do I have legal protection if things go wrong?
If you don’t have clear answers—you need an agreement in place, and you need legal counsel.
📞 Protect Your License Before You Put It on the Line
Don’t gamble with your future. Whether you’ve already qualified a business or are considering it, let our firm help you do it the right way.
📌 Douglas Law Firm focuses on drafting, negotiating, and enforcing Qualifier Agreements for Florida license holders.
Contact us today to schedule a consultation and get the legal protection your license deserves.