Idaho Property and Casualty Practice Exam 2025 - Free Practice Questions and Study Guide

The form designed for those with potential liability exposure specifically resulting from the negligent acts of contractors or subcontractors is Contingent Liability Insurance. This type of insurance is crucial for contractors who may be held liable for the actions of subcontractors they hire to perform services. For example, if a subcontractor makes an error that causes damage or injury, the contractor who hired them could face claims.

Contingent Liability Insurance is unique because it extends coverage even when the primary liability lies with the subcontractor, ensuring that the contractor is protected against claims that arise from the subcontractor's errors or omissions. This form of insurance is essential for contractors to manage the risks associated with hiring other professionals, thereby providing an additional layer of security against potential claims stemming from someone else's negligence.

While Contractual Liability Insurance relates to liabilities assumed under a contract, it does not specifically address the negligent acts of subcontractors. Completed Operations Insurance covers liability for bodily injuries or property damage occurring after the completion of work, but it does not focus directly on subcontractor actions. Contractors Liability Insurance is a broad term that may include various coverages but does not pinpoint the contingent nature of liability stemming from subcontractors specifically.