Dry Clean Liability
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Dry Clean Liability
I’m starting a business that provides dry cleaning/laundry services to our customers by outsourcing those services to a separate dry clean company. Should I in turn expect the same or less liability than a dry cleaner as a result? Is the liability “passed-on” to the dry cleaner for bailee and goods-in-process? If, in turn, instead of my company billing the customer for the dry clean-related charges, I arrange it to where the customer actually pays the dry cleaner directly, does this decrease my liability? Thank you very much!
Asked on May 30, 2009 under Insurance Law, West Virginia
J.M.A., Member in Good Standing of the Connecticut Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
Do you have a contract with the company you are outsourcing the work to? You should have a clause that says that your company will be indemnified for any and all claims made against the dry cleaning services. This way, your company is not expososed to liability if they screw up. You also want to make sure that you get listed on their insurance policy if they will do that in the event that you are both sued for something. Howevr, i think that the indemnification clause is enough. you should have a lawyer review the contract you have. You also want to make sure you have the ability to obtain attorney's fees and costs in you have to sue the dry cleaning company for not paying you and you prevail at trial. this way, you can recoup any costs in addition to damages. this is standard language, generally.
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