Contractor Compliance: Avoiding $500K Claims with Rusty Brett from HoundDogRusty Brett (CEO, HoundDog) explains automated contractor compliance and subcontractor risk management.

THE CRISIS:

Missing 2-3 COIs during audit = $5K-$15K penalty bills

Real case: Contractor trusted sub for years. Sub didn't renew insurance. Employee injured. $500K claim. Insurance paid but DROPPED contractor. No new coverage available. Business shut down."It's not paperwork—it's your ability to stay in business."

HOUNDDOG SOLUTION:

Automates certificate of insurance tracking

- Requests COIs from subs AND agents

- Verifies requirements

- Auto-retrieves renewals

- W-9 tracking

- E-signature for agreements

AUDIT TOOL:

Input dates → Click download → All COIs in single folderSaves weeks for 400+ sub companies

PRICING: $1/month per sub ($40 minimum)

Builder Lead Converter listeners: Waived onboarding ($150-$1,000 value)

INSURANCE DISCOUNTS: One customer: 12% discount for using HoundDogRusty working with carriers to formalize

JOB TREAD POLL: Only 40% of contractors had subcontractor agreements

3 ESSENTIAL DOCUMENTS:

1. W-9 (tax)

2. COI (insurance)

3. Signed agreement (legal)

"Get these 3 things—you're 95% of the way there."

SCALE: Typical: 20-100 subs

HoundDog serves: Up to 30,000 vendors

Philosophy: Get operations set BEFORE scaling marketing

Cost of tracking: $1/sub/monthCost of non-compliance: $500K claims, lost coverage, $10K+ audits

hounddog.com

[email protected]

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#contractorcompliance #subcontractorrisk #COItracking #hounddog #constructionbusiness