Licensing and Regulatory Affairs
Professional investigator agency failed to maintain statutory insurance or surety bond requirements
Media Contact: LARA Communications 517-335-LARA (5272)
June 6, 2019 – The Dept. of Licensing and Regulatory Affairs (LARA), Corporations, Securities & Commercial Licensing Bureau (CSCL) issued a formal complaint against Data Risk Management LLC, a professional investigator agency in Rochester, and summarily suspended its private investigator license for failing to maintain either a surety bond or policy of insurance, as required under Michigan’s Professional Investigator Licensure Act (Act). The summary suspension was effective May 23, 2019.
“Providers of professional investigator services must operate lawfully, and that includes maintaining the legal requirement of insurance or a surety bond,” said CSCL Director Julia Dale. “Our bureau will take appropriate regulatory actions to protect the health, safety, and welfare of the public. Consumers should always ask to see proof of a professional investigator agency’s license from the State of Michigan before using its services.”
Farm Bureau Mutual Insurance Company of Michigan notified CSCL that Data Risk Management LLC’s insurance policy was cancelled effective August 8, 2018, for non-payment. All of CSCL’s attempts to contact Data Risk Management LLC by phone and mail to request proof of reinstatement of the insurance, a replacement surety bond, or a certificate of liability insurance, as required by the Act, were unsuccessful. Data Risk Management LLC continued to provide services regulated by the Act without a valid bond or policy of insurance on file with CSCL.
The Order of Summary Suspension requires Data Risk Management LLC to surrender its license and identification card to CSCL within 24 hours of notification. If Data Risk Management LLC fails to do so, it faces the possibility of a criminal referral to the appropriate law enforcement agency for a felony violation punishable by imprisonment for not more than 4 years or a fine of not more than $5,000.00, or both.
To be licensed in the state of Michigan, professional investigator agencies must maintain either a $10,000 surety bond or policy of insurance: $10,000 for property damages; $100,000 for injury or death of one person, and $200,000 for injuries or deaths of more than one person arising out of the operation of the licensed activity.