Most, if not all, businesses benefit from having a contingency insurance policy to cover unexpected occurrences and the financial losses they may cause.
These unforeseen circumstances can range from broken contracts and unavoidable cancellations to natural disasters and unprecedented widespread emergencies.
Gallant Risk & Insurance Services offers a complete line of personal and business insurance options in Southern California. Our knowledgeable agents can help you make choices that are best suited and most cost-effective for your needs.
What Is Contingency Insurance?
Contingency insurance is a term that encompasses several types of insurance obtained to augment existing coverage and ensure complete or comprehensive protection.
Besides protecting your business from the unexpected, it can be helpful in other scenarios. For instance, a political risk policy may be purchased to protect government contractors in certain circumstances.
Contingency insurance is best described as coverage that protects you in situations not covered by your standard business policies, which typically include professional liability coverage, like E&O or employment practices liability insurance.
However, the most common type of contingency coverage is that purchased for events.
Contingency Insurance for Events
While there are several reasons a business should purchase contingency insurance coverage, these policies are essential for any entertainment, marketing, political, educational, or sporting event.
When a company schedules one of these special events, there are many details to consider for everything to go smoothly. Contingency insurance plans are designed to provide extra protection in the event of unpredictable issues, including:
- Prize indemnity
- Over redemption
- Death and disgrace
- Film or theater production losses
- Damage to the venue or utility failure
- Event cancellation, delay, or disruption
- Weather risks, including income stabilization and cost containment
Organizers of sporting events, concerts, entertainment, theater, exhibits, trade shows, conferences, corporate events, and marketing plans can all rest easier with a contingency insurance plan.
As a secondary insurance policy, contingency insurance helps protect the policyholder and insured in situations that primary insurance does not cover. Standard policies that include partial contingency coverage may be slower to respond to a claim and generally pay out less than dedicated contingency policies.
Your extra contingency policy becomes active when you need it most, under extraordinary situations or when there’s an issue with a counterparty who has primary coverage and is or was expected to cover the losses.
Having your own contingency coverage ensures your losses are covered, can expedite payment, and even save your reputation when situations out of your control arise.
Protecting Your Assets
With contingency insurance, event organizers, promoters, contractors, government agencies, and even homeowners can be protected from lost revenues, refunds, and financial or contractual liabilities, which are not often covered by a primary insurance plan.
Having the proper insurance coverage can significantly reduce anxiety related to all the potential risks involved.
Your Southern California Business, Contingency, and Personal Insurance Provider
When buying contingency insurance, working with dedicated and well-informed agents like those here at Gallant Risk & Insurance Services in Corona is essential.
We are committed to helping you avoid any coverage duplication to ensure your costs are as low as possible while keeping you and your business well-protected.
Call (951) 368-0700 to reach our Corona, California, office and learn more about how contingency insurance can help reduce your risk of financial loss and damage to your reputation.