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cluding that they will not be allowed on the premises without a certificate of in- surance), and then follow through.

Requiring proof of insurance and risk transfer is a well-established protocol throughout the business world. If a contractor or vendor refuses to comply or complains, it may be time to look for an alternative contractor or vendor.

Since you are their source of revenue, they should be willing to take these steps to maintain the business relation- ship.

The real benefit of effectively man- aging third-party risk assessment and transfer will come when something happens or when a lawsuit is filed – and your company may be able to redi- rect the impact of the legal battle to where it belongs: the contractor who actually caused the problem.

January 2011 www.marinelink.com 15

About the Author

Rich DeSimone is president of Travelers Ocean Marine.

He can be reached at [email protected]