Don’t Overlook Risk Transference
National Federation of Independent Business: “One aspect many small to mid-size businesses overlook is risk transference. No major company Kuhn is aware of fails to transfer risk wherever and whenever it can. What should you do? At a minimum, ask your subcontractors to name you on their policies as additional insured on a primary/non-contributory basis. Ask the manufacturers of the products you sell or your suppliers of component parts to do the same. Verify the adequacy of their limits and follow up every year. You may believe they will balk at your request, but you will probably find they are doing it for your competitors. Review your contracts to verify you are passing on risk were appropriate and the contracts you are signing are not conferring liability for which you are unprepared.”
via Insurance Blog.
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