What is contingent liability insurance?
What is Contingent Liability? Contingent liability, sometimes referred to as indirect liability in the insurance industry, is defined by the International Risk Management Institute as coverage for losses to a third party for which the insured is vicariously liable.
What is the meaning of cargo insurance?
What is Cargo Insurance? Insurance that generally protects shipments from loss, damage, or theft while in transit. This coverage is beyond basic claims insurance that may be provided, and it will reimburse for the designated value of the goods if a covered event occurs while the freight is in transit.
What is contingent liabilities and examples?
Description: A contingent liability is a liability or a potential loss that may occur in the future depending on the outcome of a specific event. Potential lawsuits, product warranties, and pending investigation are some examples of contingent liability.
What are insurance contingent liabilities?
Contingent liability, sometimes referred to as indirect liability, is a responsibility that occurs based on the outcome of a particular event that provides coverage for losses to a third party for which the insured is vicariously liable.
What are the types of contingent liabilities?
There are three GAAP-specified categories of contingent liabilities: probable, possible, and remote. Probable contingencies are likely to occur and can be reasonably estimated. Possible contingencies do not have a more-likely-than-not chance of being realized but are not necessarily considered unlikely either.
What is the meaning of freight insurance?
: insurance for indemnifying the policyholder against loss of the freight money if the shipowner cannot complete his contract of carriage because of unavoidable peril.
What do you mean by cargo risk?
Cargo risk management is the identification, analysis and control of risk associated with cargo within transportation service, Logistics or supply chain network. The impact of a cargo loss in today's competitive business environment extends far beyond the amount that may be recoverable through an insurance claim.
What is marine and cargo insurance?
So, marine cargo insurance is a class of property insurance that insures property while in transit against loss or damage arising from perils associated with the navigation of the sea or air and subsequent land and inland waterways. The Act does not specifically mention air travel nor pure land-based transits.