Exam DISC-RM Practice Question 472
Study guide: Exam DISC-RM
A property owner hires a small contractor to repair its roof. The contract's hold-harmless clause makes the contractor responsible for any injury claims arising from the work. A passer-by is injured by falling debris and recovers $300,000 from the property owner, and the contractor, which has few assets, cannot reimburse it. Which disadvantage of noninsurance transfer does this illustrate?
- A) If the party accepting the loss cannot pay it, the firm remains responsible
- B) Noninsurance transfers usually cost more than buying insurance
- C) Noninsurance transfers cannot shift losses that are not commercially insurable
- D) Noninsurance transfers move the loss to the party least able to control it
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