Contractual Liability
Liability assumed by contract, such as hold harmless agreements, which may be covered by GL only when the contract is insured contract.
CGL includes limited coverage for liability assumed in an "insured contract" such as a lease hold harmless. Broad indemnities in construction contracts may exceed what GL covers; additional insured endorsements shift protection.
Review contractual risk transfer with counsel.
Examples
A subcontractor indemnifies the GC for jobsite injury; the subcontractor's GL and AI endorsement respond per contract and policy.
Common Misconceptions
Signing unlimited indemnity assuming insurance covers all of it. Failing to match contract indemnity to actual coverage.
Related Terms
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Back to Glossary Claims Pages AcademyThis definition is provided for informational and educational purposes. Insurance terminology may vary by jurisdiction, policy, and context. Consult a licensed professional for guidance specific to your situation.
