What step should a contractor take if required to indemnify the owner for extra costs?

The most appropriate step for a contractor facing an obligation to indemnify the owner for extra costs is to have the contract reviewed by an insurance agent. This option is correct because an insurance agent can provide specialized knowledge about the coverage options available and how they can impact the indemnity obligations. Reviewing the contract with an insurance agent helps the contractor understand the risks involved and ensures that they have adequate coverage to meet potential indemnification claims, effectively safeguarding their interests.

Considering the other options: Accepting the terms without question can lead to unforeseen liabilities that the contractor may not be prepared to handle. Confering with legal counsel is certainly valuable as well, but the immediate focus on insurance specifics makes consulting with an insurance agent more strategically aligned with addressing indemnity concerns. Negotiating a lower indemnity amount is another possible avenue, but it is essential to first understand the contractual obligations and available insurance protections before attempting to alter any terms. Overall, the review with an insurance agent provides a foundational strategy to manage indemnity risks effectively.