Businesses frequently enter into contracts with suppliers, vendors, independent contractors, landlord/tenants, and other service providers.
In those contracts it is common to find language which transfers the liability of one party to the other in the event that bodily injury, property damage (tangible and intangible) and other liabilities arise out of the contractual relationship. The liability may involve both insurable and non-insurable liabilities upon the contracting parties.
The contracting parties, and their supporting legal and risk advisors should review in detail the contractual language and what liabilities may be assumed due to the contract.
Contractual Risk Transfer is one of the five traditional risk management techniques within a business.
These techniques include: Risk Retention, Risk Control, Risk Avoidance, Insurance Transfer & Contractual Transfer.
Areas to Consider:
Normally spotting the language within the contract that involves risk transfer will be clear and obvious, for it will be clearly titled “Indemnification”, or “Indemnity and Hold Harmless.” Keep in mind, in some cases the language may be embedded in other clauses of the contract such as the “Insurance” clause. Great care should be taken in reviewing the language, for a business may unwittingly assume damages, legal expenses or other expenses they did not intend or desire to assume.
Do not assume what may have been the verbal intent of the parties is reflected correctly in the contract language, “Trust, but verify.” When in doubt seek proper legal counsel.
Please also note that in most cases insurance may or may not provide full support to the indemnification clause due to the existing insurance policy terms, conditions and limits. It is important to consult with your insurance advisor in transferring risk utilizing your insurance contract. They can address any changes to your insurance policies required to support your contractual obligations under the contract.
It is recommended that your insurance advisor review documents, such as certificates of insurance, received from the other party to confirm compliance with any insurance requirement of that party under the contract. Again remember, “Trust, but verify.”
Risk prevention is crucial and taking the precautions before committing to a contract or entering a new business venture will increase your risk management techniques and promote valuable insight.
With ever changing rules and regulations, the Agri-Business team can meet your needs, whether you are a global enterprise or an entrepreneurial startup company.
ABIS has the experience and market presence to put together a risk management solution tailored to your specific needs. Contact an agent today!
Happy National UV Month! July is a month dedicated to educating yourself and protecting your skin from damage that can occur from the sun.
UV rays come in three forms: UVA, UVB, and UVC. These rays can have different effects on the skin. UVC rays never come through the atmosphere and do not come in the form of sunlight. However, UVA and UVB rays have been known to cause damage to skin cells which can result in sunburn and wrinkles or as much as skin cancer. No UV rays are safe to the skin without protection!
Wearing sunscreen and protecting your skin is incredibly important to your long-term and short-term health! Understanding how to protect yourself from UV rays properly is extremely beneficial. A few tips to remember about UV rays are that they are strongest in the daytime (most likely from 10 AM to 4 PM) in the summer and spring seasons and if you are on a higher elevation, the rays will be stronger. Also, keep in mind that UV rays reflect differently off different surfaces which can increase their strength.
It is never too late to start protecting your skin! If you work outside or spend a lot of time outdoors it's important to get in the routine of taking care of your skin or else your at a higher risk of skin cancer. There are many different ways to protect yourself. One of the most important ways to do so is by always applying sunscreen. You can find sunscreen in many forms: sprays, lotions, creams, etc. Wearing sunscreen every day is the first step to creating a healthier relationship with your skin and the sun. Second, if you can find the shade, stay in it. By staying out of the direct sunlight you are protecting yourself while still being able to spend time outdoors. Lastly, wear clothing that can protect you! Find sunglasses that are made to block UV rays, wear a hat, and wear long-sleeves, pants, or long skirts if you are able to. Remember that these ways to protect yourself from harmful rays may not always 100% work and save you from a sunburn. If you feel like you could be getting burnt with just sunscreen on, head inside or try to get in the shade until the rays are less powerful.
Sunburns are immediate but sun damage is something that will happen and build throughout your lifetime. Stay out of tanning beds and remember to check the UV rate on your weather app if you can! Knowing how to protect yourself before any permanent damage is done is so important. Following the tips above will help prevent sunburns and can lessen the risk of getting skin cancer to create a healthier lifestyle in the sun.
While overall workplace injuries have been falling in the last decade, the numbers of deadly and catastrophic injuries are actually on the rise.
A new report recommends that employers focus their injury prevention efforts on reviewing accidents that could have resulted in serious injury or death, as well as on near misses, where a potentially serious accident was narrowly avoided.
The "Serious Injury and Fatality Prevention: Perspectives and Practices" report, by the Campbell Institute, recommends that employers focus on their internal processes that could lead to serious injuries and fatalities, rather than on human error itself.
They should focus on identifying and fixing holes in their safety management system, examine their workplace culture, and change or modify work processes so as to eliminate the chances of human error affecting safety.
The report recommends that organizations don't put the blame on the injured worker, but instead take a look at internal factors that contributed to an accident. To identify events or near events that could have led to serious injury or death, the prevention model in the report recommends focusing on and studying:
By identifying potential precursors to such events and educating employees about those precursors, companies can focus on eliminating the potential for accidents to occur in the first place. One key component of this method is to identify which smaller accidents or near misses had the most potential to inflict serious injury or death.
Establish a system for reporting near misses. Consider:
When rolling out the plan, hold a safety meeting explaining to employees why the company is focusing on the smaller incidents and near misses, and how a minor incident can turn major. Explain the importance of looking at potential rather than actual outcomes for minor incidents.
Farming doesn’t stop in the winter, there are animals to be fed, crops to be handled, machines to be repaired and so much more.
Here are some reminders for workers who are out bracing the cold everyday. Stay warm & safe everyone!
Dehydration may seem like a minor ailment, but it can be quite dangerous. In fact, most heat illnesses are caused by dehydration. Did you know that by the time a person is thirsty, he or she is already 2 to 3 percent dehydrated? Once this occurs, it's difficult to make up for the lost hydration.