A liability which may be incurred by an insuredThe entity (individual or otherwise) whose risk of financial loss from an insured peril is protected by the insurance policy. More as a result of negligence on the part of independent persons engaged by him to perform work. The most common example is the contingent liabilityA liability which may be incurred by an insured as a result of negligence on the part of independent persons engaged by him to perform work. The most ... More of a principal contractor, which may result from construction operations undertaken by his subcontractors.