What is Contingent Liability Cover?
Contingent Liability Cover refers to a policy that a company takes out on the life of a director or an employee that stands as a sort of guarantee for any debts that the business might take on. The cover should be equal to the loan taken out.
How does Contingent Liability Cover benefit your business?
Taking out Contingent Liability Cover is an effective way of protecting your business in the early days when you are starting it up. You as the owner can stand surety for a loan which can cover any start-up expenses or new loans.
Contingent Liability is thus an excellent way of protecting your personal and new-business interests by making sure in the event of your possible death your family, and your business debt are kept separate and the heirs of your estate are not effected by your business affairs.