Advertisement

Incidental Contract

Last updated: May 24, 2018

What Does Incidental Contract Mean?

An incidental contract is a part of the coverage offered by a general liability insurance policy. It is listed under the provisions for indemnity. An incidental contract covers liabilities for a person or group hired by the insured to work on a project under the insured's name.

Advertisement

Insuranceopedia Explains Incidental Contract

An incidental contract will come into play, for example, if a repair and rebuilding company is hired to remodel the interior of a building. If the remodel involves making changes to the electrical system, the company might hire an electrician as a contractor. If the electrician makes a mistake on the job resulting in faulty wiring, the incidental contract in the repair company's general liability policy will provide coverage for the legal costs associated with the contractor's error.

Advertisement

Share this Term

  • Facebook
  • LinkedIn
  • Twitter

Related Reading

Tags

InsuranceCommercial LinesInsurance Contract

Trending Articles

Go back to top