| Contractual Risk Transfer, a sound business practice | | | | harmless/indemnity agreement. This service is |
| to protect and potentially increase the amount of | | | | included at no extra charge. |
| insurance available to you at no additional cost begins | | | | In the Attached articles from Fireman’s Fund |
| with an evaluation of your contracts of your | | | | Lessons Learned Library you will read about actual |
| premises, service providers, vendors and suppliers. | | | | claims that have occurred, their outcomes, and what |
| Contracts should clearly define the scope of services | | | | risk transfer techniques should have been employed: |
| and responsibilities of the parties to the contract. The | | | | - Linen Service Claim |
| hold harmless/indemnity agreement within the | | | | - Snow Removal |
| contract should then transfer the risk from one party | | | | - Lease Defines Responsibility |
| to the other for their respective responsibilities, each | | | | - Flue Cleaning Service Claim |
| providing indemnity to the other. | | | | Risk Transfer used properly and executed correctly |
| Your landlord, service providers, suppliers and vendors | | | | can mean the difference between you or your policy |
| should all indemnify you and | | | | paying a claim or the actual responsible party paying |
| Hold you harmless for any and all liabilities, which arise | | | | the claim |
| out of their actions or in some cases their inaction. | | | | One of the first and least costly steps you can take |
| Support for this indemnity should come in the form | | | | to controlling the direct and indirect cost of claims is |
| of an additional insured endorsement to their general | | | | to make sure you have agreements with all landlords, |
| liability policy. | | | | service providers, suppliers and venders. |
| It should also be required that their policy be | | | | These agreements should be reviewed by a |
| endorsed to provide coverage under the additional | | | | competent experienced practitioner and certificates |
| insured endorsement on a primary and | | | | of insurance should be maintained and updated on a |
| non-contributory basis. This requirement causes your | | | | regular basis. You should always consult with an |
| coverage to become excess and theirs primary. | | | | attorney before drafting or signing any contract. |
| The financial strength of the insurance company | | | | Please contact Rodney Nars to receive a free copy |
| whom is supporting the indemnity is only as good as | | | | of the General Liability Risk Transfer Checklist |
| their ability to pay. | | | | From the Fireman’s Fund Safety Resource |
| The agency I represent has an attorney on staff | | | | Center. |
| as well as personal familiar with | | | | This checklist contains useful information on how to |
| Hold harmless/indemnity agreement and additional | | | | manage a risk transfer program along with a sample |
| insured endorsements. | | | | letter you can use to request risk transfer |
| We are available to review our client’s contracts | | | | documents. |
| relative to the insurance requirements and hold | | | | |