Check Out These Tips to Protect Your Business from Liability When Hiring a Subcontractor

Tips to Protect Your Business from Liability When Hiring a Subcontractor

Be cautious when hiring a subcontractor to protect your business from liability.

Running a small business isn’t easy. You’re constantly working to ensure that your business and your clients are well taken care of. However, sometimes you wear yourself thin, and you need to bring in some extra help. That’s where contractors come in. Hiring a subcontractor can help you get your work done in a timely, efficient manner. However, it’s important to be careful. Check out what you need to know about hiring a subcontractor so that you’re protected from liability issues.

Draft a Contract.

You should always keep a written agreement between yourself and anyone you conduct business with, especially your contractors. A contract is a legally binding agreement that holds all parties involved to certain standards. It’s designed to protect you from any issues or disputes down the line. When working with a subcontractor, always keep a contract and specify all the terms of your agreement, especially when it comes to liability. Outline your liability terms to protect your business from any accidents. Consult with a lawyer to ensure that everything in your contract is kosher.

Background Check.

Look into your subcontractor’s background. Check out old jobs and contact a few references. If there were any flaws or mistakes in their work, proceed with caution. It could be a sign that you’re at risk for liability issues if any future mistakes are made. Check out your subcontractor’s background before you decide to work with them.

Verify Proof of Insurance.

Running a business is risky. Sometimes accidents happen. You should have liability insurance, but you should also verify that your contractors have liability insurance. Before you hire a subcontractor, ask to see a certificate of liability insurance. That way if anything goes wrong, you can rest easy knowing that all parties are covered.

Safeguard your business and hire the right subcontractor. Keep your business safe and invest in commercial liability insuranceContact the professionals at ISU Wissink Insurance. Located in Culver City, California, we serve all your personal and commercial insurance needs.