Business operations are inherently risky given the fact that people are involved. Often these risks are managed through the purchase of insurance policies that cover various aspects of the way you work:

  • Property Insurance
  • Workers’ Compensation
  • General Liability
  • Professional Liability
  • Auto Insurance for work-related driving

Often these types of coverages apply to companies and their direct employees. What happens when there are damages and losses that result from contractor work? These workers are not direct employees of your business. What type of insurance covers the risks associated with their operations?

Understanding Contingent Liability Insurance

Contingent liability insurance, also known as indirect liability insurance, helps cover risks associated with the work of a hired contractor. Although a contractor should have insurance to cover their risk, an injured or impacted party may also bring charges against the company that hired the contractor. For example, occupational insurance is a type of contingent liability protection that employers will purchase for workers who may not be covered by traditional workers’ compensation policies.

Finding the Right Insurer

Lawsuits or claims that arise from delivering a work product, either through direct employees or contractors, can threaten the health of your business. As an owner, it’s incumbent on you to make sure you have the right policies that cover the various aspects of your operations. Consult a provider that specializes in contingent liability insurance products that are tailored to your operational needs.