Contingent liability insurance
Insurance, Insurance Marketing, Liability Insurance

Liability Insurance for Contractors and Consultants

If your company’s core business is providing the expertise, labor, or services needed by another organization, it’s easy for your business to thrive while maintaining a relatively low public profile. That low profile doesn’t insulate you from the operational liabilities of your industry, though. While you might share some liability with client companies, you also have exposure to certain kinds of liability based on that relationship, the same as any service provider incurs with a client. You also likely pick up contingent liabilities, as explained in this basic primer from

Protection From Shared or Contingent Liability

Contingent liability insurance covers your exposure to risk stemming from the work you do on behalf of another company. That means you get protection from possible bad faith actors within your organization, as well as from individual mistakes and oversights contingent on the work done in your role as a consultant or contractor. This can be very important in industries where a lot of the physical infrastructure is either built or maintained by specialist providers, as you find in many resource extraction niches, including mining and fossil fuels. Those are hardly the only industries where businesses providing contracted services like management consultation pick up those risks, though. If you do any work on behalf of other businesses, you should talk to a provider about whether contingent liability coverage is right for your company.

Henry Henrynms (Author)