Risk transfer for contractors

As a contractor, it's in your best interest to transfer your risks down to your subcontractors for their negligent acts performed on your behalf. The failure to transfer these risks to an at-fault subcontractor may make you responsible for their negligent acts, expose you to uninsured or underinsured liabilities, and result in higher insurance costs for your business.

3 steps to creating an effective risk transfer program

Step 1: Understand the basics of risk transfer

Learn how incidents involving subcontractors can lead to lawsuits and understand important provisions of a subcontractor agreement and why it is always best to seek the counsel of a qualified construction attorney.

• Risk transfer for contractors (PDF)
• Certificates of insurance overview (PDF)

Step 2: Find a qualified contractor

A subcontractor prequalification process will help you select a contractor who possess the necessary skills, experience, financial stability, insurance and safety qualifications to successfully fulfill your specific project needs.

• Best practices for selecting a contractor and setting up a jobsite (PDF)
• Sample pre-qualification template

Step 3: Implement your contractual risk transfer program

Check all the boxes to help ensure that minimum insurance and contractual provisions are met for your project.

• Risk transfer setup guide for contractors (PDF)
• Contractor’s checklist: Minimum contact insurance requirements and limits (PDF)

Additional resources

• A law every contractor working in New York needs to know and understand (PDF)
• AIA Contracts
• ConsensusDocs®