Contingent Risk Insurance

Contingent Risk Insurance is Castle Harbour’s surplus-lines solution that mitigates esoteric, high-severity exposures with a custom-tailored policy backed by A-rated carriers, replacing uncertain liabilities with fixed, finance-ready certainty. …Specifically, Contingent Risk Insurance is a catch-all solution that converts hard-to-place, non-standard exposures into custom-tailored policies backed by credit-worthy insurers. Whether the risk is a credit-default on a borrower collapse, a parametric payout tied to a rainfall trigger, turbine under-performance at a solar farm, an adverse algorithmic output under an artificial-intelligence warranty, or revenue loss from supply-chain disruption, the coverage indemnifies the insured for a defined financial loss and associated costs, typically for a one-time premium equal to a single-digit percentage of the exposure. By offering bespoke indemnities from A-rated insurers, this solution can transform contingent liabilities into balance-sheet certainty, unlock debt financing, smooth M&A negotiations, and protect operating cash-flows across domestic and international jurisdictions. Policy sizes range from mid-eight to nine figures, and exposures can be creatively syndicated to minimize pricing while satisfying lenders’, sponsors’, and managements’ risk appetites.