HOW TO BUILD A WALL OF LIABILITY PROTECTION BETWEEN RETAILERS AND CONTRACTORS

A retailer hires a contractor, who then hires a sub-contractor, independent contractor or agent to service or install something for the retailer’s customer. Who is going to be liable for damages caused by that contractor, contractor’s employee, independent contractor or contractor’s agent? Everyone gets sued to start with, and the litigation process begins; interrogatories, depositions, experts and money going down a black hole. How does the retailer protect itself from the negligent and criminal acts of its contractor, sub-contractor, independent contractor or other agents that service its customers?

Here are the keys to limiting your liability as a retailer:

1) Require any person who is representing your company, no matter how far down the chain, to have a criminal background investigation preformed by a private investigator that obtains information directly from federal, state, and county courts;

2) Implement a tracking system in place for anyone that actually goes into the home or business of a customer for installation or service;

3) Mandate that all service techs have undergone proper criminal investigation;

4) Implement a notification system for the customer as to when the service tech will be at the home or office;

5) Provide the customer a photo showing what the service tech looks like prior to the appointment;

6) Provide the service tech a photo id badge that the service tech must openly wear to the appointment;

7) Provide the customer with information about what to look for when the service tech arrives at the home or office;

8) Provide the customer a simple computer verification system that proves that no criminal history has been found on service tech;

9) Do not use or allow your contractors to use instant background services to perform a background investigation, rather only through private investigators;

10) Do not use any screening company that only uses its own data sources, or only information that it buys from other companies, or performs a simple check or search. The cost of a real investigation with real-time, accurate, and relevant information should cost between $50.00-$100.00.

Only when you apply these principles in your screening and management processes will you effectively be able to limit or avoid liability and place it where it belongs.

About The Author:

J. Denton (Denny) Dobbins is Nationally and Internationally recognized as the world’s leader in Premises Liability Protection and has been featured across North America sharing the stage with Political Leaders, Police Celebrities, Administrators and Business Leaders. Since 1978, Denny has been involved with the detection and deterrence of Criminal Activity in properties and employment of all types.