Incidental Contract

Published: | Updated: May 24, 2018

Definition - 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.

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.


How Well Do You Know Your Life Insurance?

The more you know about life insurance, the better prepared you are to find the best coverage for you.

Whether you're just starting to look into life insurance coverage or you've carried a policy for years, there's always something to learn.

Share this:

Connect with us

Email Newsletter

Join thousands receiving the latest content and insights on the insurance industry.