CONTINGENCY is similar in meaning to EMERGENCY, although a contingency is understood as a crisis situation which was unexpected or difficult to predict (but predictable).
Contingency planning is an important aspect of responsible risk management. Companies invest in contingency locations, which are ready to be used in the event of a crisis, especially when the main company premises can’t be used.
We can try to prepare for the future, but it’s impossible to prepare for every contingency.
Clients often turn to insurers in the time of contingency, but the timing might not be best for insurers J.
In contracts, we can sometimes see the expression to be contingent upon, which means “być uzależnionym od”. For example:
The payment is contingent upon timely delivery of goods (Płatność jest uzależniona od terminowej dostawy towaru).
The result of the claims handling procedure is contingent upon the provision of Proof of Loss by the Insured (Wynik procesu likwidacji jest uzależniony od dostarczenia przez ubezpieczonego dokumentów potwierdzających zaistnienie szkody).
The expression to be contingent upon is formal. In less formal situations, you can simply say dependent upon.
The word contingent is used in many different ways and doesn’t always carry the same meaning:
Some brokers are entitled to contingent commission under their contracts with insurers (Niektórzy brokerzy są uprawnieni do otrzymywania nadprowizji zgodnie z ich umowami z ubezpieczycielami)
They sent a small contingent to Iraq (Wysłali mały kontyngent do Iraku).
It’s a good idea to take out a Contingent Business Interruption policy (Dobrym pomysłem jest wykupienie CBI).
So what’s the difference between Contingent Business Interruption policy and Business Interruption policy?
Contingent Business Interruption Policy covers you in the event of a loss occurring at your supplier or recipient of your product, which affects your sales or your client’s ability to obtain your product.
For more detailed explanation, type in “Contingent Business Interruption Policy” on YouTube .
Hope it’s clear. But I still don’t know why they call it CONTINGENT business interruption… J Any ideas?
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