Risk Transfer: Subcontractor Agreements & Insurance Verification
The purpose of a good subcontractor agreement is to spell out the responsibilities and transfer risk to the appropriate party. A good Risk Transfer preserves your assets, including your insurance limits. Here are some best practices you may want to consider for a successful Risk Transfer.
1. Have a construction attorney who knows the scope of your projects review your agreement. Laws can change, so a periodic legal review is good risk management.
2. Have a Construction Risk Advisor review the insurance requirement section of the agreement.
3. Get your sub agreement signed by all parties prior to starting.
4. Ensure that the contract’s insurance requirements are met before work begins!
5. Obtain and review certificates of insurance including additional insured endorsements.
6. Have a record retention program in place to keep contracts and other insurance documents for as long as you may need the sub or their insurance carrier to protect your assets. Your attorney may advise you how long to keep these records.
Remember, ZORN is here to help. Contact us if you have questions.