The Hidden Hazards of Holiday Lights: How Unregistered Installers Are Dimming the Decor Market

The holiday season brings joy, twinkling lights, and festive decorations that transform neighborhoods into winter wonderlands. But behind the sparkle, a growing issue lurks: non-registered, non-insured Christmas light installation companies. These fly-by-night operations, often operating under the radar, promise cheap and quick services but deliver risks that can turn your holiday cheer into a nightmare. In this post, we’ll explore why these unregistered businesses—those that skip state and federal registration, evade taxes, and fail to secure general liability insurance—are eroding the quality of the holiday decor market and leaving customers dangerously exposed.

Understanding the Problem: What Makes a Company “Unregistered and Non-Insured”?

Legitimate Christmas light installation businesses must register with state and federal authorities, comply with tax obligations, and obtain necessary licenses where required. This process ensures accountability and allows them to secure general liability insurance, which protects both the installer and the customer. Unregistered companies, however, bypass these steps entirely. They don’t pay taxes, which gives them an unfair edge by cutting costs, and they can’t (or won’t) get insurance because insurers view them as high-risk due to non-compliance.  Without registration, these operators often lack the training, safety protocols, and oversight that come with formal business structures, leading to subpar services and hidden dangers.

How to Spot an Unregistered or Uninsured Installer

Most homeowners don’t have extra time to research every holiday light installation company. But consider how much time and money you could lose dealing with an accident, injury, theft, fire, or property damage caused by an unqualified installer.

A simple first step is to check your state’s Secretary of State business search page. Enter the company name—whether it’s an Inc., LLC, or DBA (“Doing Business As”). If it doesn’t appear, it’s not a legally registered business. That alone should be a red flag.

You can also browse local community social media groups. You’ll quickly find countless horror stories of “contractors” who disappear with deposits or cause damage—almost always with no legitimate business registration behind them. That quick check takes less than a minute but can save you from becoming the next cautionary tale.

Another telltale sign is their online presence. Look closely at the photos on their website or social media. In our experience, 95% of the time, these “companies” are showcasing stolen photos of other people’s work—including dozens of ours, used both nationally and locally.

Finally, beware of the endless stream of “Make $$$ this holiday season” videos and workshops teaching people to “fake it until you make it.” Many of these untrained installers take deposits from unsuspecting homeowners, hoping to learn on the job—at your expense. The stories we hear each year from consumers who made the mistake of hiring these installers I the year prior or even in the current season are astonishing and dangerous.

The Dangers to Customers: Liability, Injuries, and Losses

Hiring an unregistered, uninsured installer might seem like a budget-friendly choice, but it exposes you to significant risks. Imagine this: an installer falls from your roof while stringing lights, suffering severe injury or even death. These unfortunate events happen every season. Without workers’ compensation or liability insurance, you—the homeowner—could be held personally responsible for medical bills, lost wages, and legal fees.  In fact, property owners who hire unlicensed contractors can face fines, legal fees, and liability for on-site injuries.

Beyond injuries, there’s the risk of property damage. Faulty wiring could cause electrical fires, or poorly secured lights might damage your roof, gutters, or siding. Uninsured companies offer no coverage for these incidents, leaving you to foot the repair bills.  If a “loss event” occurs—like storm damage to the installation or third-party claims from a neighbor’s property being affected—you’re on your own, as these operators often disappear after payment.

Poor workmanship is another common issue. Unregistered installers may use cheap, non-durable materials or improper techniques, resulting in lights that fail prematurely or look sloppy. This not only ruins your holiday display but can lead to costly do-overs. Studies and reports highlight that unlicensed contractors frequently deliver substandard results, skipping safety codes and cutting corners to maximize profits.

How These Companies Undermine the Holiday Decor Market

The proliferation of unregistered installers isn’t just a problem for individual customers—it’s degrading the entire holiday decor industry. By avoiding taxes and registration fees, these businesses can undercut prices, drawing customers away from legitimate companies that invest in quality, training, and insurance.  This creates unfair competition, forcing reputable firms to lower standards or struggle to stay afloat.

Market quality suffers as a result. When low-ball operators flood the scene with shoddy work, it lowers consumer expectations and trust in the industry overall. Professional installers, who adhere to building codes and use high-grade, weather-resistant lights, can’t compete on price alone, leading to a race to the bottom.  In the home services sector, unlicensed contractors contribute to widespread issues like project delays, safety hazards, and increased costs for everyone involved.  The holiday decor market, already seasonal and competitive, becomes saturated with unreliable players, making it harder for quality-focused businesses to thrive.

Moreover, this shadow economy encourages unethical practices. Without oversight, these companies might engage in scams, such as demanding upfront payments and vanishing, or using subpar equipment that poses fire risks.  The overall effect? A diminished market where innovation and excellence take a backseat to cheap, risky shortcuts.

Why General Liability Insurance Is Non-Negotiable for Installers

General liability insurance is the backbone of any reputable installation business, especially for something as hazardous as hanging Christmas lights. It covers third-party claims for bodily injury, property damage, and even advertising injuries.  For Christmas light installers, risks like ladder falls, electrical shocks, or accidental damage to client property are everyday realities.

Unregistered companies can’t obtain this coverage because insurers require proof of licensing and compliance. Without it, both the business and the customer are vulnerable. Legitimate policies protect against lawsuits if an installer is injured on your property or if lights cause damage to a passerby’s vehicle.  In essence, insurance ensures that accidents don’t escalate into financial disasters, maintaining trust and professionalism in the market.

Wrapping It Up: Choose Wisely for a Brighter Holiday

As the holidays approach, don’t let the allure of low prices blind you to the risks of unregistered, non-insured Christmas light installers. These operations not only endanger customers through liability gaps and poor quality but also erode the integrity of the holiday decor market by fostering unfair competition and lowering standards. To safeguard your home, wallet, and peace of mind, always verify a company’s registration, tax compliance, and insurance. Ask for proof of general liability coverage, check references, and research complaints through state attorney general offices or consumer protection agencies.

By supporting legitimate businesses, you help elevate the market and ensure your holidays shine safely and brightly. Happy decorating!