Page 161 - RISK Management IC 86

The Insurance Times

There are specialists engaged in all types of organizations
to undertake and supervise hazardous activities, as the
specialists area more skilled and experienced to carry out
the jobs more safely. He may also use certain specialized
instruments to reduce the risk, which the general principal
would not have usually.

The specialist might be a contractor or subcontractor,
who takes care of all the minute headaches and is
responsible for any bad publicity which may occur if an
accident occur.

The contract between the principal and the contractor
should be clear to hold the contractor responsible for any
loss arising out of the work.

The loss should cover damage to both the principal's
property as well as third party property. However all such
undertakings by the contractor/subcontractor becomes
useless unless backed by an ability to pay.

So mostly the principal stipulates the contractor/
subcontractor to insure these risks in their joint names.
Transferring risks to a contractor/subcontractor does not
mean that the principal can escape his costs. The

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