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Work injuryEach day you run your business you face plenty of risks and potential liabilities. Regardless of how hard you may try to avoid these potential liabilities, they can still adversely affect company’s finances. However, if you have business liability coverage, then you have some protection. There are some liabilities that are caused because of mistakes on your business’s part, but those aren’t the only ones you face. Sometimes, incidents with causes that are out of your control can result in a liability claim.

Indirect and Contingent Liability

You should have indirect and contingent liability coverage if the actions of others related to your business can potentially cause damage. This form of liability covers the activities of employees, agents, contractors, and any other people related to your business if they cause damage while on the job for your company.

The biggest difference between traditional business liability and indirect contingent is that with direct liability, your business has done something that was possibly preventable which resulted in bodily harm or property damage to an individual. In regards to indirect and contingent liability, your business hasn’t directly done anything, instead someone representing it has.

It’s a lot more difficult to protect yourself against or predict indirect liabilities because they might be related to activities that you don’t really have control over. For example, imagine you hire a contractor to hang up a new sign outside your office building. They then subcontract the job to another business, but stay onsite to supervise the process. While the subcontractor is hanging the sign, his equipment fails him and the sign falls onto the car of a patron at a store close by. Technically, this incident isn’t your fault. You hired a licensed and experienced contractor to perform the job, as you expected and they did. However since it was your sign that was being hung the individual can sue you for the damages. If they’re successful in suing you, then the money would have to come out of your business, unless you have indirect and contingent liability coverage for protection.

The nature of indirect claims is unpredictable and difficult to control. This makes it very important that you have the right insurance protection. To learn more about what Atlanta business insurance coverage is right for you, give us a call at 877-997-2478.

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