What can I do to protect my company if it has been having problems with accidental damage by employees to customer’s homes?

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What can I do to protect my company if it has been having problems with accidental damage by employees to customer’s homes?

We have no problem repairing damages but we are running into issues where customers are claiming more and more damages done by employees after the initial report (first reporting a hole in the wall, then a week later that employee ruined carpets, then a week later that employee damaged garage door, etc.). Also where customers are using their own contractors without prior approval on quotes and then just sending us the invoice. Is there anyway to prevent possible fraudulent claims by customers? Also do we have to just pay the invoice when customers use contractors that were not pre-approved?

Asked on September 15, 2014 under Business Law, Utah

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

1) The best way to protect yourself from fraudulent claims is by good documentation: e.g. photographs (especially ones automatically and date stamped) of the home before and after work; "inspection" reports or acknolwedgments of work done signed by customers after your employers are done, where they sign a form indicating that the work was done satisfactorily and that there are no issues; etc.

2) If the contract/agreement between you and customers states that you will only pay the invoices of pre-approved contractors, then you would not have to pay non-preapproved invoices; make sure this term is in a written agreement signed by the customer.


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