October 20, 2016

Hi Jennifer,

I just found out my billing company subcontracts work out of the country. Am I protected from the subcontractors work?

Please let me know your thoughts.  

Thanks, Dr. L


Subcontracting work, especially billing, is pretty common - many billing companies do outsource to subcontractors.  Whether or not you have protections from the subs conduct is determined by contract. Since you do not have a contractual relationship with the sub, we look towards your contract with you billing company.  If you do not have a contract, well, that was your first mistake.  If the contract doesn't address subcontracting, or, er, liability, for that matter, there would be your second mistake. If the latter is applicable, then it is likely you are operating without protections against mistakes from the sub.  

There are a host of issues that stem from potential liability from a subcontractor - the first that comes to mind is, if work is being outsourced out of the country, even if you have contractual protections, how do you enforce?  Such concerns may be addressed by contract or in the contracting process.  

Bottom line - it is important to know who is doing work for you and who will be responsible for errors, omissions and/or exposure/liability (from any source).    If you need assistance with contract review, contact Jennifer