Contractual Risk Transfer for Personal Loss Exposures

 

A variety of risk management techniques are necessary to properly handle personal lines loss exposures, such as insurance, retention, and contractual risk transfer. Yet, individuals and some personal lines insurance agents often overlook these risk transfer techniques.

There are a host of such techniques available for individuals and families. Here are some real-life examples.

• Melissa hires a general contractor (GC) for a major renovation project on her home. Among other things, she should ask the GC to list her as an additional insured under the GC's commercial general liability (CGL) policy.
• Frank leases some of his vacant land to another party for commercial use. He should ask to be included in the Additional Insured—Managers or Lessors of Premises (CG 20 11) or a related endorsement in the lessee's CGL policy.
• Margaret is a volunteer director of a local nonprofit organization. She should request and verify that the organization includes an indemnity agreement restricting the personal liability of a director or officer for the organization's negligent actions.

As your personal lines agent, we are educated and savvy in offering contractual risk transfer advice to our clients. We serve as personal risk managers rather than simply insurance salespeople, clients are well served and better protected, and our reputation and retention rates do assuredly soar with this value-added service.

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Doug Myrick FLMI, ACS, ARA - cell phone 941.979.1101 -  website myrick.4eia.com