What Is Contingency Insurance and Who Should Have It?
Posted January 03, 2023 in Contingency Insurance
3 Minute Read:
Many individuals, and even some small businesses, aren’t aware that contingency insurance exists. And because of this, even fewer individuals know whether or not they need it.
Most, if not all, businesses can benefit from having a contingency insurance policy to cover unwanted and costly surprises.
These unforeseen circumstances can range from broken contracts and unavoidable cancellations to natural disasters and unprecedented widespread emergencies.
Call (951) 368-0700 to reach our Corona, California, team and learn more about your contingency insurance options. Sleep better at night with the right contingency insurance policy.
Contingency insurance can cover your business for situations you know could happen, given the nature of your services, like cancellations and inclement weather.What Is Contingency Insurance?
Contingency insurance can cover your business for situations you know could happen, given the nature of your services, like cancellations and inclement weather.
While some businesses should definitely have separate contingency insurance coverage, others may be adequately covered by their existing policies.
Contingency insurance can also cover events that no one could predict, like natural or man-made disasters, which are often excluded from your standard business or homeowners policies.
This makes it vital to know precisely what your existing policy does and does not cover.
The following are a few examples:
Contingency Insurance for Events
The most common reason to obtain private contingency insurance is associated with event production and planning. This insurance policy is essential for businesses that produce, coordinate, promote or have contracts relating to:
- Large fairs
- Large seminars
- Sporting events
- Marketing events
- Theatrical productions
- Political events and rallies
- Other special events
For those whose livelihoods depend on the productions or events they’re associated with going smoothly, some of the damages a contingency insurance plan covers can include:
- Venue damage
- Unsolvable utility failures
- Weather-related damages
- Stage and theatrical production losses
- Event disruption, delay or cancellation
Event venues should also have contingency coverage, as should some popular entertainers and others who may lose income or be sued for causing someone else to incur financial damages due to unexpected occurrences.
Other Entities That Should Have a Contingency Policy
Contractors – Contract Cancellation Insurance
Contractors typically put good faith into the contracts they sign and rely on other parties to deliver on promises made in the agreement. When something goes wrong due to an unavoidable situation or breach of contract, the right contingency coverage can protect your bottom line.
Government Contractors – Political Risk Insurance
NGOs and government contractors can benefit from a type of contingency coverage called political risk insurance.
This kind of policy can provide coverage for contractors who lose a job because the government entity that was to fund the project has canceled it.
Coverage like this can also cover financial damages that stem from a law changing and rendering a contract void, unenforceable or necessitating a significant revision.
These contingency policies can also help you pay subcontractors who suffer financial losses for these reasons.
Contingency Insurance for Homeowners
While business owners purchase most contingency insurance policies, homeowners may also benefit by protecting themselves from devastating losses caused by natural disasters, like floods, hurricanes and earthquakes which are often not covered by a standard homeowners policy.
Contingency Insurance in Southern California
The knowledgeable agents at Gallant Risk & Insurance Services, Inc., in Corona, CA, are committed to helping you protect your home and business while avoiding duplicate coverage to ensure the lowest costs possible.