From termite pre-treatments and fumigations to lawn care and construction repairs, PMPs rely on subcontractors to fill in the service gaps and allow them to provide more services to clients.
Working with subcontractors is not without risk and many pest management professionals (PMPs) are not fully aware of the perils as it relates to insurance.
Kristina Phillips, CIC, CRM, vice president and director of client services for PestSure at Alliant Specialty, said that PMPs need to carefully review the details in their subcontractor agreements and contracts and make sure they are indemnified.
“PMPs must ensure the subcontractor can comply with all the requirements included in the contract,” Phillips said in the news release. “If something goes wrong and there is a claim, the pest management professional is ultimately responsible. Many PMPs don’t realize that and assume the subcontractor will take care of it.”
Phillips said workers compensation claims and fumigations — a service PMPs routinely subcontract for — is a good example of the importance of carefully reviewing your agreements.
In contracts, PMPs are often asked by customers to include a waiver of subrogation to their workers compensation policy. By signing the waiver, PMPs eliminate their insurance carrier’s right to seek damages from another party. PMPs often add these waivers without knowing the full impact of the decision, says Phillips.
“It is important to remember that if you sign a waiver, you are doing so for both you and the subcontractor,” Phillips said. “If a subcontractor’s employee gets hurt on the job their insurance company can go after your company to recover costs for the injury.”
If you regularly work with subcontractors, PestSure offers the following tips to ensure the process protects the interests of both parties:
- Review subcontractor contracts carefully – know what you’re signing.
- Confirm the insurance coverage is what the contract requires.
- Obtain a certificate of insurance from the subcontractor and be named as an additional insured.
- Don’t sign waivers before reviewing them with your insurance carrier.