Industry Advice Ask Mike: What Questions Should You Be Asking Your Sublet Provider?

with Mike Anderson

This month, we “Ask Mike” to discuss some of the main questions shops should ask when considering a sublet provider. We at Hammer & Dolly hope you find the following exchange useful, and we encourage you to reach out to us if you have a question for Mike on this or any industry-related matter that he can answer in a future issue.

Hammer & Dolly: With the rise of ADAS repairs and other advanced procedures in the industry, shops are relying on sublet providers like never before. While subletting work provides convenience for shops and the potential for safer repairs for consumers, it could be problematic with respect to liability and other factors. Based on your experiences and what you’re seeing out there, what are some primary questions or considerations that shops must focus on when selecting a sublet provider for their services?

Mike Anderson: You’re right; there’s a lot of sublet work out there. It could be mechanical work, such as suspension work, alignment work or airbag work. Some shops sublet out their scans or their calibrations, and others sublet out things like glass, ceramic coating or even something as simple as tinting a window.

There are two critical things with sublet work. Number one, the volume of accidents and insurance claims is declining. Shops should really look at bringing sublet procedures in-house, just from a profitability standpoint. Alignments, full-time mechanical work and even glass are some of the low-hanging fruits that could be considered. Obviously, there’s more profit in doing these things in-house.

Liability is the other side of the sublet equation. A lot of people think that when they sublet something out, they’re not liable. I’m not a lawyer, and I’m not giving out legal advice, but my understanding and my perspective has always been that even if you sublet it out, you’re still liable because the customer’s contract was with you – they signed the authorization form for you to do the repairs.

When you’re selecting a sublet provider, you want to make sure they’re properly insured and request a copy of their insurance policy. I see some people do that when they first get a sublet provider, but they don’t do that year over year. Sometimes, people’s policies lapse or they don’t renew. Additionally, if that sublet provider is doing something in your facility and they get injured, who’s liable? Is it you or their insurance provider? You need to know the answer to that question.

H&D: With ADAS, we are seeing more shops bringing those services in-house or even starting their own facilities devoted to them as a secondary business. Where do you see that trend going? Are there other prior sublet items you’re seeing more shops integrate into their businesses?

MA: I’m seeing more shops bringing mechanical work in-house. Bringing alignments in-house is absolutely something to consider. Also, if I were still a shop owner, I would be purchasing my own OEM scan tools and making sure that my team was properly trained on them. Not everybody knows how to use a scan tool; there’s a technical expertise to using them accurately. Some of the OEMs offer training, including e-learning modules that help technicians understand how to properly use these tools. Training may also be available from third-party entities.

To reiterate, I’m not an attorney, and I’m not attempting to give legal advice. That said, based on my perspective and experience, most shops are not equipped from a facility standpoint to properly do ADAS. They don’t have the space or the lighting, and their floors are not level enough. When I see shops doing calibrations, it’s just being done inaccurately.

The second piece of that issue is, if you do have the right facility per the proper requirements for ADAS, are you properly trained? Do you know how to actually interpret the OEM procedures correctly and perform them? If you’re doing calibrations in-house and you don’t have the right facility and the right training, you’re going to be liable. But if you sublet it out, you’re liable in that direction as well.

H&D: Yeah, it seems that shops could be hit by both sides.

MA: And there are considerations over and above liability. If you’re going to sublet out your ADAS calibrations, make sure the vehicle is prepped properly before you hand that vehicle off to that sublet provider. Make sure the tire pressure is checked or there’s a full tank of fuel; don’t just rely on your sublet provider to do that. Do it yourself.

Number two, pull all the procedures yourself and review them with the sublet provider to help ensure that they do them. You’ll want photos and other documentation to prove that you and the sublet provider did things correctly.

Shops should also verify the sublet provider’s certifications, equipment capabilities, technician training and experience with the specific vehicle and procedure. Establish clear expectations for communication, documentation, turnaround time and quality control. Most importantly, maintain a written record of every sublet procedure, including who performed the work, what procedures were followed and the results.

ADAS is a slippery slope. Whether you bring it in-house or sublet it out, either option has risk involved that needs to be figured out.

Want more? Check out the October 2026 issue of Hammer & Dolly!