Safe Subcontracting

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Safe Subcontracting

How to protect yourself when working with subcontractors

Contributed by Jewelers Mutual Insurance Co.


Before Entering into an Agreement with a Subcontractor, Do Your Research

"Get recent references and look at the Better Business Bureau," says John Ganga, senior claims examiner at Jewelers Mutual. Also ask colleagues for recommendations, consult with trade associations, and visit the subcontractor’s website. Additionally, find out if the service provider has insurance and ask for proof of insurance before entering into an agreement.

Once You Establish a Relationship, Create a Written Agreement or Contract

While it may have once been common to agree upon terms and conditions with a handshake, verbal agreements can sometimes cause problems down the road, says Jeff Mills, vice president of Commercial Lines Operations. He suggests that you spell out the responsibilities and liabilities of each party in writing. Sometimes the purchase order for a job may take care of t...