Dealing With Independent Contractors Public Entities enter into service contracts on a regular basis. Examples of such contracted services include lawn maintenance, concessions, construction, transportation, instruction, and the list goes on. When entering into a contract, an entity may become liable for third-party claims. In fact, public entities have been sued because of the action or inaction of contracted service providers. Here are some risk management techniques to assist in reducing liability when dealing with independent contractors. Check Them Out. Screen your contractors before using them. Check their references and deal with reputable companies that are financially and legally sound, and make sure they have adequate insurance. Put Pen to Paper. Contracts and agreements should be in writing. The contract should also be clear and unambiguous to clarify both partiesí responsibilities and liabilities. Describe the services in detail with clear and specific requirements. Include an H.H.A. and Warranty. The written contact should include a Hold Harmless Agreement and a Breach of Warranty Clause. The Hold Harmless helps transfer responsibility to the contractor, and the Breach of Warranty Clause protects you if policy conditions are not met.		Check Their Policy. Make sure their policy is current and has adequate limits. Clarify that the policy covers contractual liability. Get Added. Make it a requirement to be added as an ìadditional insuredî on the contractorís policies. Generally, this will provide for you to be defended and covered under the insurance policy of the contractor for claims arising out of the contractorís actions. Get Some Proof. Obtain certificates of insurance. This is not a guarantee of coverage, but a certificate is better than nothing. Also look the certificates over carefully for crucial information such as effective dates and appropriate limits . Request & Require. Ask for proof of workersí compensation insurance. Require the contractors to notify you in advance if their insurance is cancelled, non-renewed, or reduced. Call in Counsel. Legal counsel should review all contracts. Prior to signing and agreeing to the terms, the agencyís legal counsel should review the documents involved. Be Thorough. Make sure you and the contractor are clear on everything and the paperwork is complete. Check the project out before, during, and after the work is completed by the independent contractor.

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