Contractual Liability — Insurance Claims Definition
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 Mistakes
Signing unlimited indemnity assuming insurance covers all of it. Failing to match contract indemnity to actual coverage.
