Have you wondered what the most common reasons for getting contingent liability insurance are? Although you might not be too familiar with this particular type of liability coverage, it can offer important protections against some frequent types of losses. Take a look at the key purposes and benefits of having this coverage.
Contingent Coverage Offers Protections in the Event of Third-Party Losses
In most cases, the primary purpose behind getting contingent insurance coverage is to have protections in place in the event of third-party losses that a company can legally be held liable for. For example, a given business could benefit from this insurance if it is liable for a third party’s:
- Property damage incidents
- Business damages
- Advertising and intellectual property issues
- Personal injuries
Occupational Insurance Coverage Could Provide Additional Benefits
If a company’s contingent insurance also includes occupational insurance coverage, the covered party could enjoy additional benefits. Some types of contingent occupational coverage could potentially include:
- Disability coverage
- Death benefits
- Accident liability coverage
- Deductible limits
By providing key protections in the event of several common types of third-party losses, contingent liability coverage offers a critical safety net for many circumstances, often including accidents and cases of death. Now that you understand the purposes and benefits of this coverage type, you can decide whether it’s an appropriate protection to add to your insurance package.