What is Risk Management? |
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In order to accomplish the objectives of a company, risk management is an organized procedure for recognizing, evaluating, prioritizing, and dealing with potential threats and opportunities. It entails identifying risks, assessing their significance and likelihood, and putting plans into place to either eliminate, minimize, transfer, or accept them. Effective risk management requires ongoing communication and monitoring.
1. Condo/Coop/HOA's Risk Management:
Sample Certificate of Insurance (COI): A Certificate of Insurance (COI) is a document that provides proof of insurance coverage. In the context of Condo/Coop/HOA's, you may require COIs from contractors, service providers, or vendors who work within the community. The COI should include:
2. Property Owners Risk Management: Sample Certificate of Insurance (COI): Property owners may require COIs from contractors or service providers working on their properties. The COI should contain similar information as mentioned above, tailored to the specific project or service. 3. Homeowners Dealing with Subcontractors: Selecting Subcontractors: When hiring subcontractors for home improvement or repair projects, homeowners should conduct due diligence. This includes checking for proper licensing, insurance, and references. Contract Agreements: Always have a detailed written contract with subcontractors specifying the scope of work, timeline, payment terms, and insurance requirements. Insurance Coverage: Require subcontractors to carry liability insurance and workers' compensation coverage. Ask for a Certificate of Insurance (COI) as evidence. Additional Insured Endorsement: Consider requesting that your name and property be added as an additional insured on the subcontractor's liability policy. This provides you with added protection in case of accidents or damages caused by the subcontractor. Regular Inspections: Monitor the progress of the work and ensure it meets your quality standards. This can help identify potential issues early and prevent accidents. Permitting and Compliance: Ensure that the subcontractor obtains any necessary permits and complies with local building codes and regulations. Non-compliance can lead to additional risks. Documentation: Keep records of all communications, contracts, invoices, and payments related to the subcontractor's work. This documentation can be crucial in case of disputes or insurance claims. Insurance Claims: In the event of property damage or injuries related to the subcontractor's work, report the incident to your insurance company promptly. Provide all necessary documentation and cooperate with the claims process. Remember that risk management involves a combination of preventive measures, contractual safeguards, and insurance coverage. Always consult with legal and insurance professionals to ensure that you are adequately protected in your specific situation, and local laws and regulations may also play a role in determining your risk management requirements. |
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