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What are the benefits of Contingent liability insurance?

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Contingent Liability Insurance If you are a property owner, particularly a landlord, contingent liability insurance can be a very useful coverage in the event of a partial loss. Specifically, it covers the cost that might be incurred if part of the structure, though not damaged by the incident (fire, for instance) had to be torn down because of a local ordinance or law that required doing so. This coverage is important because the insurance company will pay the landlord/owner for the damaged (lost) portion of the building, but will not pay to demolish the undamaged portion, or to remove the debris created during demolition. This is a significant exposure for older buildings which were not built to current building code, and is a risk that increases along with the size of the structure. Most good commercial insurance policies will include Ordinance or Law coverage, which covers all three exposures: 1 Demolotion of the undamaged portion of the building.

2 The increased cost of construction for bringing the buidling up to code when rebuilt.

3 The cost to remove the debris resulting from demoltion or loss.
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What are the differences between contingency and contingent liabilities?

Contingent liabilities are liabilities that might be incurred and  the outcome is uncertain. They are recorded when the future events  are probable to happen and the amount

What is contingent liability insurance?

Liability of individuals, corporations, or partnerships for accidents caused by people other than employees for whose acts or omissions the corporations or partnerships are re

Which contingent liability is normally accrued?

  Usually accrued   Loss related to:   1) collectibility of receivables   2) obligations related to product warranties and product defects   3) premiums offere

How do you record contingent liabilities?

A contingent liability is recorded in financial statements or books  of accounts only if it is a probable contingency and if the  liability amount can be estimated. No need

How does contingent liability impact earnings?

Contingent liability can impact earnings because it is a projected  and future liability. Not knowing what the outcome of the liability  is, it can unexpectedly affect a lar

Contingent liability is?

A potential liability that arises from a past transaction and is dependent on a future event.

What is contingent liability?

  A contingent liability is: (a) a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one

Journal entry for contingent liability?

There is no journal entry for contingent liability because  contingent means which is not occurred and not sure that when will  that liability will be created or liability i

Define contingent liabilities?

types of liabilities also used in accounting matter in business level accounting. when use this liabilities at money goes outside also get some types of loss but not actual lo

What are the different types of Contingent Liabilities?

Common types of contingent liabilities include guarantees and the results of legal disputes. Guarantees may be given on behalf of an associate company, or as part of a larger

Is contingent liability credit or debit?

Contingent liability is not shown in financial statments until itif considerably clear that liability will be happend and until thattime it is shown as a note in notes to fina
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What is meant by the term contingent liabilities?

The term contingent liabilities means liabilities that are not included in a normal balance sheet of a company's income. These liabilities are pending the actions of other ou