Contingent liability cover

Fallback cover that does not replace a primary cover but is triggered if the intended primary cover is non-existent or ineffective. An employer normally relies upon an indemnity under the employees’ car insurances, when employees use their cars on his business. If an employee’s policy is invalid, the employer’s indemnity fails but the motor contingent liability section of his public liability policy fills the gap. Others who need contingent liability cover include principals relying on cover arranged by contractors and hire car operators relying on insurance arranged by hirers.