Manage Affiliate Contractor Risks with this Helpful Checklist

Manage Affiliate Contractor Risks with this Helpful Checklist
Posted on in Insurance Management, Safety Managers

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Working with contractors can be extremely beneficial for affiliates. But it can also be a lot to manage, especially when selecting a trustworthy contractor, preparing for a project and staying on top of contracts and documentation.

To help affiliates manage their contract partnerships, our carrier partner Chubb created an extensive contractor management checklist.

Manage Affiliate Contractor Risks: Contractor Selection

Everything begins by selecting the right contractor for the project. Doing some work upfront to select the best available contractor prior can help ensure a smooth project, reducing delays and other project-related conflicts.

To find a credible, trustworthy contractor:

  • Check the Better Business Bureau to determine past business practices of potential contractors.
  • Check for appropriate licensing required for the work requested.
  • Conduct an interview and use a detailed Pre-Qualification form with questions concerning OSHA citations, recordable/lost workday incidence rate and fatality rates for the past three years.

 

Manage Affiliate Contractor Risks: Contracts and Documentation

Once you have selected the contractor, it is important to formalize the contractor management processes and establish lists of responsibilities for all parties.

  • Develop a binding and legal contract—The written contract or statement of work should define the scope of the work, procedures, materials, time frame and expected results. It should not contain harmless agreements or waive subrogation in favor of the contractor, as these can reduce the care that the contractor may exercise at the site.
  • Request certificates of insurance—Request proof of general liability and workers’ compensation with adequate limits from the contractor. Limits of liability should be commensurate with work performed and associated hazards.
  • Ask to be named as an additional named insured—Contractors should add your affiliate as a named insured on their insurance policy. If you experience resistance, consider another contractor.

 

Manage Affiliate Contractor Risks with Help from Lockton Affinity and Chubb

Download the extensive Contractor Management Checklist, courtesy of our carrier partner Chubb, to help your affiliate manage any contractor or subcontractor relationships.

As always, the Habitat for Humanity Affiliate Insurance Program, administered by Lockton Affinity, is here to support your affiliate’s insurance needs. Contact our dedicated insurance representatives today at HFHInsuranceService@LocktonAffinity.com to learn more.

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