Contractors in Ohio: The Wisconsin Warning You Can’t Ignore
Wisconsin’s recent enforcement action against a contractor for violating Wis. Stat. § 629.10(3) highlights growing regulatory scrutiny over contractors who engage in the Unauthorized Practice of Public Adjusting (UPPA). The contractor was fined for combining repair services with “claim assistance,” a violation of consumer protection laws.
For contractors in Ohio, this serves as a critical warning. The same activities—negotiating insurance settlements, interpreting policy coverage, or marketing claim management services—can expose businesses to significant penalties under Ohio law. The issue is further complicated by the Cinnamon Ridge v. State Farm decision, which adopted the “line of sight” rule for determining material replacement boundaries. That ruling expands repair obligations but also increases the temptation for contractors to discuss claim scope or coverage—conversations reserved for licensed public adjusters.
To remain compliant, contractors should focus strictly on construction and restoration activities, ensure their contracts exclude claim negotiation, train staff to recognize legal boundaries, and refer insurance-related matters to licensed public adjusters. Collaboration and education within the industry are essential to prevent future enforcement actions and to protect both consumers and legitimate contractors from costly missteps.
