Managing 3rd Party Relationships & Transferring your Risk

Managing 3rd Party Relationships & Transferring your Risk

A risk transfer review program makes it possible to manage 3rd party relationships.

We know that you’ve put a lot of hard work into building up your business. There’s just no reason, then, to expose it to unnecessary risks.

Specifically, it’s important that you protect your business against the hazards that 3rd party relationships bring to it. You can do that with the right risk transfer review program and commercial insurance.

What should a risk transfer review program look like for your business? Here are a few to-dos you need to make sure get checked off.

  • Think about the vendors with whom you do business. Which of them sell you a product or service that – should it fail – would result in serious implications for your business?
  • Identify the specific risks brought to your business by the 3rd party vendors on which it relies. Name the individual companies that could bring hazards your way.
  • Create and use a process to transfer that risk away from your business. This will likely mean obtaining a certificate of insurance from any vendors you’ve identified as risks and having them sign hold harmless agreements with you. You can also explore vendors coverage, an endorsement to your 3rd party’s liability insurance that says it will also extend to your business when you’re using their product or service.
  • Regularly review your contracts and 3rd party relationships to make sure you’re staying protected even through any new annual contracts you sign.

Is your business transferring the risks that come with working with 3rd parties away from it? To make sure you’re doing all you can to protect your California business against the risks it faces, contact Hoffman Brown Company. Our dedicated Sherman Oaks team of risk management professionals is here to help you mitigate any hazards your vendors may bring to your business through the right programs and commercial insurance policies.