During the initial risk audit, NSM learned that a new Behavioral Healthcare client did not have a uniform standard practice of managing, reviewing and developing contracts with vendors and subcontractors.



This inconsistency led to an “uninsured roofing subcontractor” successfully suing the organization for over $300,000in Workers Compensation and Medical Benefits because he was injured while working on one of the insured’s buildings.



NSM noted that the loss was a direct result of the insured’s lack of formal contract. We explained that if procedures had been in place (a standard contract with adequate limits and contractual language), an uninsured contractor would never have been on-site


The Solution

NSM created a part-time position to centralize this process, and assisted in crafting minimum insurance requirements for all vendors and subcontractors.