Unilateral Contract Insurance is a form of insurance designed to cover the cost of unanticipated losses arising from one party entering into a contract without the consent of the other. This form of insurance can be beneficial for businesses that are unsure of their partner’s ability to fulfill their contractual obligations, or who have doubts about the other party’s creditworthiness. It helps to mitigate risk and ensure that businesses are able to sustain consistency in their operations. The coverage can vary significantly according to the details of each policy, but it generally covers any financial losses incurred as a result of a breach of contract or nonperformance by the other party.