Third-Party Vendor Clause: 3 Ways to Protect Your Concierge Business
One of the things I talk about often inside my coaching programs is how to protect yourself when you recommend other businesses to your clients.
Because this comes up all the time in the concierge industry.
A client asks:
“Do you know a good handyman?”
“Can you recommend a realtor?”
“Do you have a moving company you trust?”
“Who should I call for landscaping?”
And because you are helpful, connected, and resourceful, your first instinct may be to give them the name of someone you know.
That is completely normal.
But when you are making that recommendation as part of your business, you need to be more careful than you would be when casually giving a neighbor the name of someone who painted your house.
Your client may see your recommendation as a professional endorsement.
And if something goes wrong, they may come back to you.
I learned this lesson early in my own concierge business.
The Moving Company Story That Changed How I Handled Referrals
Several years ago, a woman hired me for a one-time project.
She needed help finding a moving company.
I did not already have a moving company I regularly referred, so I researched several local options. I contacted them, reviewed their information, and asked for estimates.
I gave my client three companies to consider.
She decided to meet with two of them.
After reviewing the estimates, she chose one and asked me to schedule the move.
I was not involved in the packing, moving, or unpacking. My role was simply to research the companies, give her options, and coordinate the company she selected.
A few weeks after the move, I reached out to see how everything had gone.
She forwarded me a long email thread between herself, the moving company, and her attorney.
The house she had moved into was brand-new construction with newly stained hardwood floors.
The moving company placed cardboard down to protect the floors. Unfortunately, the stain had not fully dried.
When the cardboard was removed, it damaged the new flooring.
As a newer concierge business owner, I immediately panicked.
I felt terrible.
I worried that I had somehow caused the problem because I had helped her find the moving company.
But once I looked at what had actually happened, I realized I had done several things correctly.
Those steps protected me, and they are the same steps I now teach other concierge business owners.
1. Verify That the Vendor Is Properly Insured
Before you recommend a vendor, ask for proof of insurance.
Do not rely on a website, social media page, or verbal reassurance.
This matters whether you are recommending a:
- Moving company
- Handyman
- Cleaner
- Organizer
- Landscaper
- Contractor
- Pet sitter
- Home care provider
- Other service professional
Insurance does not guarantee that nothing will go wrong.
It does show that the vendor has taken steps to operate professionally and that there may be coverage available if damage or injury occurs.
In the moving company situation, I had already asked each company to provide proof of insurance.
That became an important part of protecting my business.
2. Give Your Client More Than One Option (I learned this from the world of Real Estate)
Whenever possible, give your client two or three qualified options.
Then allow the client to review the choices and make the final decision.
This creates a clear distinction between:
“I researched several companies that may be able to help you.”
and
“This is the company you should hire.”
You can share helpful information, including:
- Contact details
- Insurance status
- Pricing information
- Availability
- Services offered
- Reviews or references
- Your own experience with the company
The client should still make the final choice.
In my situation, my client reviewed multiple companies, received estimates, and selected the mover herself.
That mattered.
I had not guaranteed the company’s work or made the decision on her behalf.
3. Include a Third-Party Vendor Clause in Your Contract
Your client contract should explain what happens when you research, recommend, schedule, or coordinate third-party vendors.
This clause is especially important if vendor coordination is a regular part of your services.
You may help your clients find contractors, schedule appointments, collect estimates, meet service providers at the home, or oversee projects.
Your contract needs to reflect the work you actually do.
And if you are realizing that your current contract does not cover situations like this… or you don’t have a client contract yet— my Contract Collection can help you get started.
It includes sample contracts and professionally written clauses created specifically for concierge and helper-type businesses, including language addressing third-party vendors.
As always, have any contract template reviewed by an attorney for your business and location.
Listen Up! Your Resourcefulness Is Valuable!
Clients hire concierge businesses because they trust us to find solutions, make connections, and help get things handled.
Before recommending a vendor, verify their insurance, give your client multiple options, and include third-party vendor language in your contract.
Those three steps help protect your business while allowing you to continue being the resourceful person your clients hired you to be.
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It’s the recipe Kelly used to grow her business step by step from a team of 1 (just her) to a thriving team of 8 in under 8 years.
If you’re looking for a real, proven path to building your concierge business-this is it.
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