Insurance
By definition, insurance pays an indemnity amount to a loss payee upon the occurrence of a defined event that is uncertain to occur.
As with any other type of subcontracting, outsourcing contracts typically include appropriate insurance provisions for the protection of the parties.
As business becomes more dependent upon information technology, intellectual property and trade in services, new types of insurance coverage may be underwritten. Insurers focusing on the outsourcing service markets may design and market special policies suitable to manage key insurable risks for which no other means of risk control might be available.