Indirect Liability Insurance

“It is impossible to protect yourself against all liability, and it can be extremely difficult to protect yourself against liability where you are only indirectly involved. Fortunately, you have a couple of different options to minimize your risk if you’re concerned about potential liability issues.

Contingent Liability

Contingent liability insurance is a type of coverage that’s intended to cover liability which may or may not be needed. This is because it is dependent on the outcome of a specific event. Potential loss or damage may occur at some point in the future, but it also may not. Until someone discovers a way to reliably predict the future you may want to obtain contingent liability coverage. More information about contingent liability can be found at

Examples of Contingency Liabilities

Some examples of situations in which you might want to obtain contingent liability insurance are construction projects, product warranties, pending or ongoing investigations and potential lawsuits.

Situational Liabilities

A common situation where businesses may choose to obtain a contingency liability policy is if a company hires a general contractor to construct an office building. If the contractor doesn’t take proper safety precautions it could lead to property damage. The contractor could also be responsible for negligence that causes an on-site injury. If either of these things occur the company who owns the property could be sued.

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