Date: April 2020
Members enter into a variety of contractual agreements ranging from service provider agreements to construction contracts. Independent contractors, vendors and other providers of products or services (contractors) on behalf of the member may expose the member to liability.
A review of contractual agreements is an integral step in the risk management process. Understanding the potential risks and effectively transferring those risks should be an important part of each member’s risk management procedures.
A key risk management practice is to require contractors to have sufficient insurance to cover losses.