For public school districts, risk financing is the financial outlay associated with litigation, such as settlements, verdicts, and the cost of legal defense. Even when districts purchase insurance to finance risk, a viable risk transfer program can still benefit districts in different ways: (1) Liability policies are generally experience-rated; unfavorable loss experience negatively affects (raises) premiums; (2) Schools utilize retentions and deductibles; losses that fall within them are the district's responsibility; (3) Insurance does not always adequately cover every loss exposure; and (4) Verdicts in excess of policy limits are possible. This article discusses how districts can transfer risk through hold harmless and indemnification agreements and insurance procurement agreements in leases, construction and vendor contracts, transportation agreements, use of facility applications, consultant contracts, and inter-municipal cooperation agreements. Requiring a contractor or facility user to sign an indemnification agreement and provide proof of insurance is also a type of underwriting and can eliminate entities that cannot obtain or cannot afford business insurance. A properly designed and managed risk transfer program will help the district reduce its insurance and risk financing costs, with minimal investment. In addition to directly lowering the cost of risk, it shows commitment to the risk management process, evidencing a strong commitment to insurers and brokers. (Contains 2 tables.)