Scope of Work
- Development of third-party insurance requirements
- Contract review and risk transfer analysis
- Identification of uninsured exposures and obligations
- Third-party certificate tracking
- Ongoing review and compliance monitoring
Background: Our client was completing significant capital improvements to one of their properties and had hired a general contractor to manage the project. While their attorney was involved in negotiating and executing the contract, Corporate Protection Group was engaged to review insurance related exposures. Upon review of the draft contract, our team had identified that there were insufficient insurance requirements placed on the general contractor, where many of the obligations were left uninsured. Furthermore, after reviewing their insurance policy, it was found that there was a complete exclusion for “completed work”.
Solution: Our team worked with the client, legal counsel, and the general contractor to negotiate the insurance terms within the agreement. The general contractor was unaware of their coverage exclusion and had elected to change insurance brokers to procure better coverage.
Outcome: In addition to identifying and resolving the general contractors coverage exclusion, our team helped strengthen the contractual risk transfer within the agreement – reducing balance sheet risk in the event of a claim.
Benefits to our clients
Effective Risk Transfer
Receive assurance that your contracts effectively transfer risk the way they were intended and that your vendor’s insurance will respond in the event of a claim.
Minimize Uninsured Losses
Reduce exposure to uninsured or underinsured third-party vendors that could potentially lead to material losses and expose your balance sheet.
Reduce the likelihood of third-party vendor or carrier litigation by establishing effective base contracts and insurance requirements.
Streamline the review process of third-party insurance certificates, saving time, money, and providing assurance that third-party vendors maintain adequate coverage.