When does contingent insurance coverage apply?

Contingent insurance coverage is designed to provide benefits only under specific conditions that follow the occurrence of another event or benefit. This means that the coverage is dependent on certain predefined circumstances being met before it becomes effective. For example, it might come into play only after primary insurance benefits have been exhausted or when another type of coverage has paid out. This characteristic distinguishes contingent coverage from standard policies that offer immediate protection in a wider array of scenarios. By requiring a trigger event, it allows for more flexibility and can help manage risk by only addressing certain situations predetermined by the terms of the policy.