Masonry Magazine January 1984 Page. 33
Insurance
Insights...
Transfer Techniques Useful
Many businesspeople see risk management as a highly technical field that uses mysterious terms such as "self-insurance," "retention levels" and "risk analysis" and can be used only by large, sophisticated corporations.
In reality, risk management is nothing more than consumerism applied to the protection of businesses against risk. In other words, companies of any size use various methods to recognize and deal with the potential losses they face in the most cost-effective manner.
There is one major risk management technique that we have not discussed yet: "risk transfer." This method involves shifting your risk of loss to another party, either to an insurance company through an insurance policy, or under terms of a contract. Risk transfer arrangements covering a variety of losses can be written into several types of contracts:
Leases should clarify the risks to both lessee and lessor for losses caused by damage to the leased property, changes in its value, or injuries to persons in or about the leased property, including the lessee and the lessee's employees.
Bailee and carrier agreements, such as contracts with warehouse firms and truckers, usually transfer some risk of loss to the party to whom you have entrusted your property. The agreement should specify responsibility for losses from such causes as acts of nature, decline in market value due to damaged property and lost sales or profits caused by delayed delivery.
Construction contracts often transfer to the general contractor risks of loss from cost overruns, loss of building materials and equipment, third-party injuries, failure to comply with government regulations, and so on.
Contracts of sale, supply and service offer many opportunities for risk transfer. These clauses are often termed Hold Harmless or Indemnity agreements.
Transfer of financial risk by contract can be a very serious and complex matter, requiring professional advice. This type of review could save you time, money and grief in case a dispute arises. Insurance and Risk Management Newsletter. Commercial Insurance Service Inc., Charleston W.Va.
MASONRY
CONTRACTOR'S
TWIGS, PINS,
BLOCKS & PENCILS
FOR PROFESSIONAL IDENTIFICATION
Write for FREE
brochure and pricing
information.
STAR
4101 Garland Dr.
Dept. MM
FL. Worth, TX 76117
817-485-6073
Target Continues to Give
You the Edge with
Laser Welded
Dri Disc
Blades
The laser welded Dri Disc Diamond blade for high speed saws is a fantastic addition to your Target Diamond Blade line. Dri Disc offers all of the benefits of diamond blade sawing without requiring the use of water-plus it provides faster cutting and longer blade life than traditional abrasive blades.
Dri Disc is excellent for use on: hard brick, common brick, slate, fluted block, lentels, concrete block, hollow core block, light weight block, soft abrasive brick, cinder block, dolomite refractory.
Get the edge on your competition with Target's Laser Welded Dri Disc diamond blades and watch your profits grow.
TARGET
Federal-Mogul Corporation
Target Products Division
4330 Clary Boulevard
Kansas City, Missouri 64130
Tel. 816 923 5040
MASONRY-JANUARY, 1984 33