Billing service errors: Who's liable?

January 21, 2005

A billing service I'm considering working with wants me to sign a contract stating that I'll hold the company harmless for its mistakes. Is this the norm?

Q: A billing service I'm considering working with wants me to sign a contract stating that I'll hold the company harmless for its mistakes. Is this the norm?

A: Yes. You can ask to have the clause removed, but don't count on the com-pany's cooperation. The next best solution: Try to work out a two-way hold-harmless arrangement that would protect the service from any errors, omissions, and incorrect entries made by your office, while giving you the same protection from the service's missteps. Your best protection: Audit your billing firm intermittently.