Contingent auto liability is a type of insurance coverage that protects the lessor (owner of a vehicle) from third-party damages associated with a lessee (the driver of that vehicle).
For example, let’s say your client owns a shipping business and permits a trucker to lease one of their trucks for a delivery. If something happens while the trucker is on the road, your client could be held accountable for any property damage or injuries that occur while the trucker is driving the leased truck. Even if your client wasn’t part of the accident, they could be named in the lawsuit simply because they own the vehicle involved in the incident.
That’s where contingent auto liability comes into play, as it can help cover the financial implications, such as lawsuits, associated with the auto incident. Essentially, contingent auto liability helps to minimize risk exposures associated with leased or rented vehicles.
How Does Contingent Auto Liability Differ from General Liability?
Contingent auto liability offers an extra layer of protection for the vehicle owner that general liability may not cover. Contingent auto liability kicks in on a “contingent basis,” meaning only when the primary auto insurance doesn’t cover a specific claim.
Who Needs Contingent Auto Liability?
Contingent auto liability is ideal for those who allow others to drive their owned or rented vehicles. It’s also particularly important to have this policy when the drivers don’t have sufficient insurance to cover certain driving incidents.
Does Falvey Insurance Group Offer Coverage?
Yes, Falvey Insurance Group offers contingent auto liability, covering bodily injury and property damage liability, where applicable, under our Transportation & Logistics Liability package. Designed for transport operators and logistics service providers, our coverage also includes cargo legal liability, errors and omission liability, general liability, and contingent cargo liability. Contact us today to find out more.
