Meaning of contingency insurance in English insurance that protects someone against risks that are not the usual areas dealt with by insurance companies: The organizers of the world's biggest sporting events take out contingency insurance, which pays out if an event is interrupted, postponed, or cancelled.
This is a question we are asked often. The answer: Contingency agreements are simply tools being used by contractors to lock you into a “mental” agreement, dependent upon an approval by your insurance company.
Contingent contracts usually occur when negotiating parties fail to reach an agreement. The contract is characterized as "contingent" because the terms are not final and are based on certain events or conditions occurring. A contingent contract can also be viewed as protection against a future change of plans.
Contingent liability insurance provides coverage for a variety of situations outside your control. Some examples of contingent liability include: Product warranties. Ongoing lawsuits.