What is the difference between contingent liability and current liability?

Contingent Liability, also known as Indirect Liability arises when the business owner is held accountable for the bodily injury, property damage or personal injury to a third party by its business operations or associates who have a contractual relations with it.

A Commercial general Liability policy protects the Business against such claims.

Example: A passer by, injured due to the construction activity at a reputed hotel chain site. The passer by can claim against the contarctor as well as the Hotel chain since the Company has awarded contract to the builder or the contractor.

Current Liabilities are the debts that are payable usually within a year and affects the accounting and liquidity of the company. Example: Medical Insurance Premium