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Get Answers to Contractual Risk Transfer Questions with a New E-Learning Tool

The ability to transfer risk when entering into contracts is a robust risk management tool for public agencies. When practiced correctly, contractual risk transfer places financial responsibility for losses with the party best positioned to manage the exposure (e.g., vendor, contractor, permittee). This helps to protect the agency against loss and safeguards valuable resources.

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Effective contractual risk transfer requires knowledge of how to assess risk, review indemnity language, select appropriate types and limits of insurance, and verify compliance by reviewing certificates of insurance and policy endorsements. The Authority educates and supports members in this regard via regular in-person training, a Contractual Risk Transfer Manual, a Contractual Risk Transfer E-Learning Tool, and the availability of seven senior risk managers to answer questions and support member efforts.

Contractual risk transfer-related inquiries represent a significant portion of member interactions with the Authority’s senior risk managers. Many inquiries are variations on a theme, with the same fundamental questions repeatedly appearing. To provide members with a tool to get answers to their most pressing contractual risk transfer questions whenever they need it, the Authority has developed an online, self-paced e-learning tool.

The tool is a primer on contractual risk transfer for those new to the practice and provides just-in-time information on the following frequently asked questions:

• Do I need a written agreement?
• How do I determine what types and limits of insurance to require for a given contract?
• What are my options if a vendor or other party cannot meet our agency’s insurance requirements?
• How do I know if the certificate of insurance is acceptable?
• How do I know if the additional insured and other endorsements I received are acceptable?
• How do I conduct a contractual risk assessment?
• What should I consider before signing a vendor-provided agreement?

In many cases, answers to these questions and scenarios illustrating the answers are customized to the following functional areas: Administration, Community Development, Community Services, Information Technology, and Public Works. Users first select the question they want answered and then select the appropriate functional area to receive contractual risk transfer information tailored to that specific part of the agency’s operations.

The contractual risk transfer e-learning tool is live and available for members to access via myJPIA. Members are encouraged to share the tool with all agency staff involved in the contractual risk transfer process.

If you have any questions, please contact your assigned regional risk manager.

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