With the ever increasing liability for injury to guests being imputed to the hotel or restaurant when in fact the injury stems from the actions of a third party vendor being utilized by the hotel or restaurant, it is important to carefully consider who is being hired to perform work at your establishment. Below are twelve items to bear in mind when selecting a vendor.
1) Exercise thorough due diligence to identify and select vendor
2) Clarify duties, obligations, and responsibilities of all parties
3) Avoid form contracts provided by the vendor and utilize your own form
4) Secure the right to audit the books and records of the vendor as they pertain to your business
5) Ensure confidentiality and security provisions for your guests are in the agreement
6) Obtain indemnifications from the vendor for their acts or omissions that may result in harm
7) Verify the vendor carries adequate insurance and that your establishment is insured
8) Verify the limits of liability insurance carried by the vendor and the policy in current
9) Draft clear default, termination, and renewal provisions (include remedies/dispute resolution)
10) Verify vendor holds the applicable licenses and permits for its work
11) Define clear performance standards
12) Share the terms of the contract with others in your organization