For subcontractors wanting to avoid some of the riskiest insurance policies and contract clauses in the market today, the American Subcontractors Association (ASA), Alexandria, Va., is offering a new online resource tool. Available on ASA’s Web site,, the Subcontractor’s Transfer of Risk Action Plan (STRAP) is part of ASA’s nationwide campaign to educate subcontractors about risk transfer and how it affects their businesses.

“With the cost of some types of insurance skyrocketing, subcontractors have never needed resources for good risk management like they do today,” says 2000-2001 ASA President Richard Kohls, vice president of finance for the Fenton Rigging Co. in Cincinnati. “ASA’s action plan gives subcontractors practical information they can use to survive the hardening insurance market.”

STRAP, which incorporates the four items below, helps subcontractors identify and challenge policies and contract terms and conditions that would inappropriately transfer risks to their companies.

  • Risk Transfer: Frequently Asked Questions (FAQs). This sheet provides answers about how inappropriate risk transfer works and how to avoid it.

  • Risk Transfer: A Glossary. ASA’s glossary explains commonly used, but often confusing insurance and risk management terms.

  • Checklist on Owner-Controlled and Contractor-Controlled Insurance Programs. Many subcontractors are asked to participate in wrap-ups. This checklist gives subcontractors criteria to consider in making this business decision.

  • Indemnity Clauses in the 50 States Chart. A subcontract may or may not contain an indemnity clause, but the laws differ by state as to what kind of indemnity clauses are permitted. Subcontractors can use this chart to see what the contractual indemnity laws are in their states.