14.17 Risk Shifting

Company policy is to shift risk when possible and ethical.

Shifting risk from the licensee to another party is a desirable strategy to minimize risk. An example of shifting risk is in the event a licensee is involved in a car accident with a client and the licensee has the required auto liability coverage, the risk is shifted from the licensee to the insurance carrier. Associates must review all liability insurance policies to make sure that coverage is adequate per the Independent Contractor Agreement with the Company. For example, the minimum liability coverage requirements required by state law may be inadequate if a business passenger is seriously injured. Increased policy limits or umbrella liability policies should be explored.