Minimizing Risk Exposure as a Business Owner
Running a business often requires the foresight and strategy of a seasoned chess player. Managing potential risk can play a fundamental role in a companys ability to maintain performance and assure longevity. Business owners should be aware of the potential liabilities they are exposed to in situations where they may not be directly involved. This risk exposure is known as a contingent liability.
What Is Contingent Liability?
Contingent liability holds a business owner legally responsible for any injury or losses incurred vicariously through a third party that is hired by that company.
For instance, if a company hires an independent contractor to renovate its property, any injuries sustained due to unsafe conditions, such as simply slipping on a wet floor, could leave the company liable to any lawsuits brought against the independent contractor. Source: https://www.usrisk.com/2018/07/the-importance-of-contingent-liability-insurance/
How Does a Company Minimize Risk Exposure?
Occupational insurance policies cover liabilities involving third-party employees, including contractors and agents hired by a company. In many instances, this coverage can be an alternative to workers compensation. In comparison to workers compensation policies, occupational insurance is often more affordable while still covering any injury or loss incurred by an employee.
Obtaining a contingent liability insurance policy will help you rest easy knowing you are protected in those instances that you may not have seen coming.