Learn how to effectively transfer risk and avoid potential pitfalls on your construction project.

Every company involved in a construction project should evaluate risks and consider whether and how to transfer risks when entering into commercial arrangements with other companies engaged in the construction project. However, few fully understand the legal mechanics involved in effectively transferring risk and the potential pitfalls incurred when risk transfer fails. This topic will describe how to effectively transfer risk through commercial agreements and insurance policies and the process that needs to be followed to ensure all parties to such a transaction understand where the risk lies in the event of a loss. This topic will also explain how to establish effective loss control and claims submission strategies to mitigate risk and respond in the event of a claim. Failing to plan for and properly document risk transfer arrangements in commercial agreements and insurance policies far too often results in a costs being incurred for defense of claims and loss payments even where the parties intended the risk to be transferred.