Hello, our insurance company has suggested that we have our vendors sign a Risk Transfer & Insurance Agreement to further mitigate risk around the vendor not having sufficient insurance coverage.while working on one of our projects. It basically states that the vendor and their subcontractors, will purchase and maintain certain levels of insurance coverage during the project term. We do require a COI document from all vendors that will be working on our property but only request that at the beginning of the project and then annually going forward if they will contineu to perform work for us.Wondering if anyone in the community has heard of such an agreement, if they are using it, and if it has held up under a claim. Thank you!
While we are not insurance brokers and this is not an area of expertise for us, research has shown that these types of agreements are used often and, whichever risk transfer you choose based on your vendor and services rendered, these agreements can be very important for your institution. Not only do they help you manage financial risks associated with working with suppliers, vendors or subcontractors, it can also protect you from lawsuits or potential claims. There are several ways to approach this, and again, it is up to you and your vendor to decide which one will best serve your purpose. The following are some options to choose from:<o:p></o:p>
I hope this is helpful and would love to hear from others in the community that may have additional insight on the use of Risk Transfer Agreements. <o:p></o:p>