Contingent Liability Insurance
Updated: 09 June 2023
What Does Contingent Liability Insurance Mean?
Contingent liability insurance is insurance protection against potential perils or obligations that may or may not come to be, depending on how a particular event turns out. Companies often purchase it to protect against the possibility that an event would result in the party owing a large sum of money.
Insuranceopedia Explains Contingent Liability Insurance
Product warranties and outstanding lawsuits represent common contingent liabilities. For example, a company who sells various consumer products is sued in a product liability case. The company does not what know the outcome will be nor the exact amount of losses it might incur. In the event the case went against their favor, contingent liability insurance would protect the company from substantial losses.
Related Definitions
Related Terms
Related Articles
Life Insurance: Are Accidental Death Clauses Necessary?
Insurance Self-Service Portal: The Future of Customer Experience
Blockchain’s Impact on Transforming the Insurance Landscape
What Every College Student Should Know About Renters Insurance
Guidance for Nurses: Five Essential HIPAA Compliance Tips
Insuring Your Financial Future: the Crucial Role of Accounting in Insurance
Related Reading
Revealing the Most And Least Popular U.S. Insurance Companies
What Students Need to Know About Insurance Coverage During Internships
A Roadmap for Students Interested in the Insurance Industry
Strong Identity Verification in the Insurance Sector
How to Avoid Online Insurance Scams
How to Get Into the Insurance Industry With a Finance Degree