What is Contractual Liability Insurance?

https://robfreeman.com/what-contractu... - Contractual liability insurance protects your business against liabilities that you assume when entering into a contract, including the assumption of third party bodily injury and property damage on behalf of someone else in an indemnity agreement (aka “hold harmless”).

Contractual liability insurance may be achieved in three ways:

1) In a general liability policy through an exception to an exclusion for contractual liability in the ISO CGL form

2) Via a separate contractual liability policy or endorsement

3) Through a performance surety bond

Because many common contracts contain indemnity agreements, contractual liability coverage should be verified by reading your general liability policy – not simply by requesting a proof of insurance (COI).

This article describes what contractual liability insurance and indemnity agreements are and how to find relevant language in your insurance policy.