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Quick Tip: The Risk of Not Transferring Risk

By May 14, 2019 May 15th, 2019 Blog, Business Protection, Claims, Quick Tips

Lisa shares an example of a recent claim we had at Mackoul, and why proper risk transfer is so important.

Proper risk transfer is imperative for any building to have in place. We recently dealt with a claim that proved just how important it can be.

A contractor’s employee was working on a roof terrace loading material down to a third floor. While going down the stairs to access this area, the employee fell suffering serious injuries that required surgeries. The building owner had a contract in place with the contractor which contained the necessary indemnification and additional insured provisions. The contractor’s insurance carrier did not have an Action Over or Injury to Employee exclusion on their policy.

The claim was tendered to the contractor’s insurance carrier who provided a defense and indemnification. The contractor’s policy had a limit of $10,000,000, so the award will not go back to the building’s policy. The insured was protected in this case and their loss history unblemished.

However, had any or all these risk transfer procedures not been put into place prior to the start of the work, the building’s carrier and subsequently the association could likely be found liable with the insurance carrier being burdened with paying for injuries sustained and any demands awarded to the employee.

For more information, please contact us.