Author, Drew Garcia, Vice President of the Landscape Group, Rancho Mesa Insurance Services, Inc.

Having strong service partners that support your customers outside of your core operations is an important part of business. Many commercial landscape businesses have regional relationships with professional tree care companies to support the needs of their customers.

Here are some of the key components when setting up your overall subcontract program, specific to the tree care industry.

Written Subcontract Agreement

Work with your attorney to draft a master subcontract agreement or project/job specific subcontract agreement since the type of indemnity agreements can change from state to state.

Among other things this agreement should clearly define indemnity and provide insurance requirements.

Insurance Requirements

Limits
Collaborate with your insurance advisor to specify the types of coverages and policy limits you will require in the subcontract agreement. 

Arborist Errors & Omissions Coverage
The tree care company should carry some type of Arborist E&O endorsement or have a separate policy providing coverage for Arborist E&O.

Depending on the scope of work, if the tree care company is providing written arborist reports or providing professional consulting services, require them to carry professional liability coverage.

Additional Insured
Ask the tree care company to name you as an additional insured for both ongoing and completed operations coverage, including primary/non-contributory and waiver of subrogation on their general liability policy in your favor.

Certificates of Insurance
Collect certificates of insurance and automate the process of requesting an updated certificate as the policy period nears expiration.

Transferring risk where possible is critical for landscape contractors. Using these initial steps as you build out a best practice subcontract agreement can insulate your company from the ever growing exposures that exist as you engage with partner trades.

To discuss your company’s management of risk, contact me, Drew Garcia, at (619) 937-0200 or drewgarcia@ranchomesa.com.