As the contractor for a construction project, you are presented with significant risks, especially with each subcontractor you bring onto the job. You may be held liable for damages or injuries caused by the work subcontractors perform on your behalf – that could be an injured employee of a subcontractor or even injuries to on-site visitors. To reduce your exposure to loss and protect your business, it is critical to implement risk transfer strategies.
Risk transfer is shifting risks of loss for damage or injury to another party. For contractors, this means requiring provisions to be included in all subcontractor contracts in order to transfer the risk appropriately.