The Patch Playbook | Edition 003

How to Build a Subcontractor Risk Control Plan That Keeps You Out of Claims

If you use subcontractors, here's the uncomfortable truth:

Their mistake can become your lawsuit.

Even if your own crews are dialed in, one bad subcontractor no training, wrong coverage, cheap PPE can drag your name, your insurance, and your wallet into a claim you had nothing to do with.

That’s why every oilfield service company needs a Subcontractor Risk Control Plan. Not just for compliance… but for survival.

In this edition of The Patch Playbook, I’ll show you how to build one that works in real life, not just on paper.

Step 1: Start With a Subcontractor Pre-Qualification Process

Before they show up on site, you need to know:

• Do they carry the right insurance (and limits)?
• Do they have a safety program — or just a “safety folder”?
• Have they had OSHA citations or major losses in the past?
• Can they provide proof of training and licenses?

What to do: → Build a short pre-qual form. Include insurance requirements, incident history, and basic operational info. → Don’t skip this even for someone “you’ve known for years.” Risk isn’t personal, it’s procedural.

Step 2: Set Clear Insurance Requirements And Actually Enforce Them

Too many companies ask for COIs but never check the endorsements.

If their policy doesn’t include:

• General liability with matching limits
• Additional insured endorsements (ongoing and completed ops)
• Primary & non-contributory status
• Waiver of subrogation

…then their insurance won’t protect you in a claim.

What to do: → Require certificates and copies of endorsements. → Keep a calendar to request renewals before they expire. → Don’t let anyone on site without current, compliant coverage.

Step 3: Audit Safety Practices Not Just Paperwork

Some subcontractors have polished safety binders, and no real protocols. Others are running solid safety programs but can’t document it to save their lives.

You need both.

What to do: → Ask for their safety manual, tailgate talk records, and training logs. → Do a spot audit on jobsite behavior: Are they wearing PPE? Using the right procedures? Following your job hazard analysis?

Step 4: Get the Right Language in Your Subcontractor Agreements

If the subcontractor’s contract doesn’t include:

• Indemnity language that matches your MSAs
• A requirement to name you as additional insured
• Insurance that’s primary and non-contributory
• Waivers of subrogation

…then you’ve just created a backdoor for liability.

What to do: → Work with your broker and legal team to create a standard subcontractor agreement template. → Require every sub to sign it — no exceptions.

Step 5: Make It a System Not a One-Time Task

This isn’t something you check off once and forget. A real risk control plan lives in your process, not just your file cabinet.

What to do: → Assign someone on your team to manage subcontractor compliance. → Review certs and contracts quarterly. → Track safety performance and claims involvement over time. → Cut loose repeat offenders.

Bottom Line

Your subcontractors are a reflection of your operation, at least in the eyes of regulators, carriers, and courts.

If you don’t control their risk, you don’t control your own.

This is how you get ahead of the claim… Before it hits your loss runs. Before it blows up your insurance premium. Before it costs you the next contract.

Need Help Building a Risk Control Plan for Your Subcontractors?

Shoot me a message here on LinkedIn or email me at caden@bralyinsurance.com. I’ll help you get the systems in place before the next job starts. You can also schedule a direct meeting with me at the link below:

Caden's Calendar Link

Coming Next in The Patch Playbook: The Compliance Gap: What Insurance Companies Are Looking at Now That You’re Probably Overlooking

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