Verifying License Status

The first and most important step in retaining an Investigator is verifying that he or she is legally permitted to provide investigative services.

In nearly every U.S. State and Canadian province, a person intending to act as a "Private Detective" or "Private Investigator" must (usually) pass a background and character investigation, must complete a test or review of their qualifications and experience, and must obtain a special license.

In New York, Texas and California, for example, in order to receive an "Investigative Agency" license, an individual must have a clean criminal record, must be able to prove at least three (3) years of prior significant law enforcement or investigative experience, and must be able to furnish multiple character references. He (or she) must also furnish proof of bonding and/or liability insurance coverage prior to a license being issued. (See: "Bonding and Insurance Coverage", below.)

In most jurisdictions, a person furnishing investigative services without a license is committing a criminal act - and so it is a fairly safe bet that if you hire an unlicensed "investigator", you have retained a person who, probably due to a lack of experience or a criminal record, could not qualify for the appropriate licenses. By hiring such a person, you may be putting yourself, or your client, at legal and financial risk.

Most states have written into their lawbooks very specific and detailed definitions of what sort of activity constitutes "private investigation". In New York State, for example, a person offering to report on the "background, character, reputation... ...etc." of an individual or a business must obtain a New York State license to conduct investigations. A person offering to locate "stolen or missing items" must also be licensed.

Verifying the legal status of an "Investigator" is as simple as asking the Private Investigator for his (or her) license number, and then calling the appropriate state's licensing authority to confirm that the Investigator is in fact licensed. Private Investigator licenses are "public record", and you should be able, at the very least, to verify that an Investigator is licensed, the date that the license expires, and the name(s) on the license. Many state's licensing authorities will also inform you of any complaints filed against the Investigator - if you ask.

(A list of state licensing authorities can be found here)

Remember: if you hire an unlicensed "Investigator" in a State or Province that requires a license, you may be hiring someone who is legally considered a criminal.

Bonding and Insurance Coverage

Most licensing jurisdictions now require that an Investigative Agency maintain a bond, or liability insurance coverage, or both. Texas, for example, requires that every Investigator be covered by a minimum of $300,000 in liability insurance coverage, and New York requires that every Investigative Agency obtain $10,000 in bonding coverage.

Often a "quick and dirty" way of separating the true investigative professionals from the "part-timers" is by the amount of insurance coverage that their agency carries. The majority of full-time agencies now consider one million dollars ($1,000,000) of insurance coverage to be the minimum acceptable amount of coverage - an opinion with which the author of this FAQ strongly agrees.

Most corporate clients, insurance company S.I.U.s (Special Investigative Units) and law firms now require that an Investigator provide them with proof of one million dollars in coverage prior to being retained.

In the (very) few remaining jurisdictions which do not license Investigators, insurance coverage - or the lack thereof - is often one of the best ways to separate the "good guys" from the ones who possibly should not be hired.

In most states, the Certificate of Insurance (or Bonding) is considered to be part of the "public record" portion of the license holder's file, and so the potential client can easily determine the details of the Investigator's coverage at the same time that the Investigator's license status is verified.

The Investigator's bond or insurance is there for your protection, so verify that it exists. No legitimate investigative professional will object.

 Background, Reputation and Experience

Despite public perception, and contrary to what is reported by television "news" programs which often seem more interested in entertaining than informing, most Investigators are true professionals.

A large number of Investigators enter the private sector as retired lawmen, after 25 - 30+ years of prior law enforcement experience, and many Investigative Agencies have hundreds of years of combined investigative experience in-house.

Still, it is important to make certain that the personal skills of the Investigator you retain will match your investigative requirements.

When contacting an Investigator, ask him (or her) about his experience in conducting the specific type of investigation for which you intend to retain his agency. Although he may be, in general, and excellent Investigator, he may not have the particular expertise needed for your case. An expert in the field of surveillance might only perform a mediocre background investigation, and a top homicide investigator might not be your best choice for locating a runaway teenager.

Many Investigators who specialize in certain types of investigations have qualified for, and received, unique certification and recognition in their areas of specialization - i.e. the "CLI" ("Certified Legal Investigator") designation granted by the National Association of Legal Investigators (NALI), or the "CFE" designation granted to a "Certified Fraud Examiner" by the Association of Certified Fraud Examiners (ACFE).

Often, a good source for verifying an Investigator's experience or competence is the media. Many Investigators have received coverage for dramatic cases that they have solved, and if your Investigator has been "written up", ask him to fax you copies of the articles.

(Note: in this author's opinion, press coverage, or lack of coverage, while possibly useful for determining an Investigator's experience level, should not be a deciding factor in whether or not you retain a specific Investigator. Many Investigators maintain a low profile, toil away, and do an excellent job for their clients.)

As with all other professions, a call to the appropriate Better Business Bureau or State Attorney General's office could be useful in determining if the Investigator that you are considering hiring has any history of consumer complaints filed against his agency.

Before retaining the Investigator, ask him to briefly describe how he intends to handle your case. If he begins by hinting at "sources" and "friends in the police" - what the director of a national investigative association calls "gray-area whispering" - then this author recommends that you run, not walk, to a different Investigator. While an Investigative Agency license may be an indicator of legal status, it is by no means a guarantee of character or competence.

Finally, an important bottom line: if you are unable to reach an acceptable "comfort level" with an Investigator, trust your instincts, and don't hire him.

 Interviews Go Both Ways

A few years ago an Arizona-based Investigator was hired for what he thought was a routine license plate trace. Unfortunately, the client turned out to be a mentally-unbalanced fan of television star Rebecca Schaffer, who used the address obtained for him by the Investigator to locate Ms. Schaffer, and kill her.

You should not be offended or concerned if the Investigator you are interviewing seems to also be interviewing you. To paraphrase an old saying, "with special ability comes special responsibility", and any ethical Investigator will want to make certain that your stated reasons for wanting to hire him are genuine, and that the results of his investigation will not be misused. Such scruples should not be viewed as a potential inconvenience, but rather as an indication that you are retaining an ethical Investigator.

 Investigative Fees

Investigators typically charge an hourly rate, plus reimbursement of expenses directly related to your case. Reimbursable expenses might include airfare, hotel bills, vehicle mileage, vehicle rental, gasoline, tolls, telephone calls and payments to sources of information (confidential or otherwise).

Depending on the type of case, an Investigator might be willing to work for a "flat fee", or for a "contingency fee", subject to state law. (In New York State, for example, an Investigator is prohibited from working "on a bonus or commission basis".)

Regardless of the final cost, if the Investigator that you have retained has solved a previously unsolved crime, located a missing person, recovered a valuable item, or otherwise increased the amount of "justice" in your life then, in this author's opinion, you have gotten your money's worth.

(c) 1998 - Pallorium, Inc. All rights reserved.