Because you do not want to pay a claim for the actions of someone other than your insured, contractual risk transfer (CRT) is, or should be, at the front of every underwriter's mind when analyzing contractor risks. If your insured can be held vicariously liable for the actions of another party, you must set and then consistently apply CRT guidelines; failure to develop strong CRT guidelines can cost you millions.

As its name implies, contractual risk transfer is a non-insurance risk transfer mechanism designed to place the financial burden of an injury or accident on the party closest to and best able to control the situation – the contractor doing the work. Without strong CRT in place, the upper tier entity vicariously responsible for the actions of the lower tier contractor (you know, your insured) could be brought into the suit and may even have to pay part of the claim. But you already know all that.

Our main focus in this session is the "what" of CRT. What makes a strong CRT program? What should be contained in the contract to assure that the financial burden is placed on the party that was at fault? We will discuss what information must, needs, and should be in the contract when the strongest CRT program is the goal.

During our time together, we will highlight:

• The need for CRT; and
• The basics of CRT.

But, we will focus on:

• The minimum requirements of an "average" contract;
• Additional provisions that make the CRT "above average"; and
• The qualifications for a "superior" CRT program.