Harmonizing Risk Transfer and Insurance Policies Related to Construction Projects is brought to you by Lorman
Learn how to effectively transfer risk and avoid potential pitfalls on your construction project.
Every company involved in a construction project should evaluate risks and consider whether and how to transfer risks when entering into commercial arrangements with other companies engaged in the construction project. However, few fully understand the legal mechanics involved in effectively transferring risk and the potential pitfalls when risk transfer fails. This topic will describe how to effectively transfer risk through commercial agreements and insurance policies. You will learn about the processes that need to be followed to ensure all parties to such a transaction understand where the risk lies in the event of a loss. This topic will also explain how to establish effective loss control and claims submission strategies to mitigate risk and respond in the event of a claim. Failing to plan for and correctly document risk transfer arrangements in commercial agreements and insurance policies far too often results in incurred costs for the defense of claims and loss payments — even where the parties intended the risk to be transferred.
- You will be able to review the key components necessary to effectively transfer risk in a commercial transaction related to construction projects.
- You will be able to describe how to effectively transfer risk from one party to another through commercial agreements related to construction projects.
- You will be able to discuss indemnity provisions and insurance requirement provisions.
- You will be able to recognize the risks transferred in insurance policies when adding another party as an additional insured.