Risk Transfer

A little divergence from our normal Workers Compensation talk…


Risk Transfer, more and more we are being asked to supply owners and GC’s with insurance requirements that include Risk Transfer language.  Limits are getting higher and special endorsements are becoming common place.  


  • Additional Insured Status
  • Indemnification Agreements
  • Non Contributory Language
  • Waivers of Subrogation


These are some of the tools used to transfer risk to a “downstream” party to contract.


My question is… are you requiring the people that work for you to be responsible for their negligence?


I have a client that had some work done on his buildings fire escape. An employee of the contractor was doing some welding work and the part he was working on happen to be the supporting piece that held the fire escape to the building. Yep – fire escape collapsed.  And Yep – Mr. Building Owner has a lawsuit pending for negligence. The two men on the fire escape were seriously hurt.


My client was diligent and required that the contractor supply him with a Certificate of Insurance showing both liability and workers compensation.  BUT, there was not an indemnification agreement or any risk transfer language required from the contractor. Now Mr. Building Owner’s insurance policy will be defending the suit. I will keep you posted on the outcome.

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