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.
For years, conventional farming practices have depleted the soil we grow on. An overuse of fertilizer and chemicals is very common among modern farmers to maximize their crop yields. Where this might seem to be a short term solution in boosting your output, what is it doing to the long term fertility of the soil?
In fact, long term conventional farming practices can damage the rich, organic contents of the soil and make it so that the grounds we produce on are more and more dependent on the chemicals we spray. With the increased dependency of these synthetic chemicals that we are plugging into our soil, fertility level and overall production level goes down over time. So how can we ensure the health of our soils and an abundant crop for generations to come?
Get rid of the plow
It is estimated that we have 3 feet of topsoil on any given plot of land. Every time a farmer tills his or her field for planting, they are removing millimeters at a time for good. Aside from the physical removal of the soil, tilling greatly diminishes the ability for water to infiltrate and removes carbon from the soil which is vital for crop growth
Diversify your crop (Including cover crops)
Planting a variety of crops throughout the year can help bring depleted and eroded soils back to life by delivering more of the nitrogen rich and organic content that is lost through disrupting the ground. Whether it’s a winter wheat or a perennial rye grass, it provides protection and another source for your soils nutrients. Not to mention it can create new markets and strengthen rural communities!
Diversify your rotation
Making sure to diversify the rotation that you plant your crops is vital to break pest cycles and combat resistance. It is common among Mid-Western farmers to rotate corn and soybeans from year to year. This provides natural protection from diseases, infestations and insects.
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.
While your employees can catch the flu year-round, fall and winter are the peak times for an outbreak. In 2018, the Centers for Disease Control and Prevention reported 80,000 Americans died from the flu and more than 900,000 ended up in the hospital.
On average, U.S. employees miss more than 17 million workdays from the flu, costing employers $7 billion in sick days and lost productivity. Make sure your organization is prepared to help employees get through flu season.
Across the country property and business owners have been overwhelmed by damage caused by tornadoes, fire, flood, and other disasters. For many, this is the first time they have experienced such loss, and they become targets of insurance fraud when questionable contractors show-up in damaged communities offering to clean and repair the damage, handle the insurance claim, and other services.
A dishonest contractor may collect payment without completing the work, they may use inferior materials, or they may perform work that is not up to code. It’s not uncommon for a fraudster to convince a property owner that a large deposit is required before work can begin. Often, the work is started, but not completed before the crooks disappear. Further, a contractor that manipulates the price to cover the deductible or extra work not caused by the disaster is committing insurance fraud.
Proper Maintenance of Grain Storage Helps Preserve Value
Autumn has officially begun and that means crops have grown and harvest is among us, which makes this the perfect time to start your fall cleaning and prepare for grain storage. Taking action beforehand helps ensure the condition of grain stored, as well as costly consequences that result from maintenance neglect.