Contractual liability insurance is a type of insurance coverage that protects a party from financial losses resulting from a breach of contract. This insurance policy is typically purchased by businesses or individuals who enter into contracts with other parties, and it provides coverage for any legal expenses or damages that may arise if one party fails to fulfil their contractual obligations. The purpose of contractual liability insurance is to mitigate the financial risks associated with contractual breaches and provide peace of mind to the insured party.
Contractual liability insurance is a type of insurance coverage that protects a party from financial losses resulting from a breach of contract or other contractual obligations.
Any individual or business that enters into contracts with other parties should consider obtaining contractual liability insurance. This includes contractors, vendors, service providers, and other professionals.
Contractual liability insurance typically covers legal expenses, damages, and other costs associated with a breach of contract claim. It may also cover liability arising from indemnification clauses in contracts.
Contractual liability insurance generally covers a wide range of contracts, including construction contracts, service agreements, lease agreements, and supply contracts. However, it is important to review the policy terms and conditions to ensure that specific types of contracts are covered.
Yes, contractual liability insurance can often be added as an endorsement to an existing general liability policy. However, it is recommended to consult with an insurance professional to determine the best coverage options for your specific needs.
Like any insurance policy, contractual liability insurance may have certain exclusions. Common exclusions may include intentional breaches of contract, fraud, or illegal activities. It is important to carefully review the policy terms and conditions to understand the specific exclusions.
Yes, contractual liability insurance typically provides coverage for legal defence costs associated with a breach of contract claim. This can include attorney fees, court costs, and other related expenses.
Yes, contractual liability insurance can cover damages awarded in a breach of contract lawsuit, up to the policy’s coverage limits. However, it is important to review the policy terms and conditions to understand the specific coverage provided.
Contractual liability insurance is not typically required by law. However, many contracts may include provisions requiring parties to maintain this type of insurance coverage. It is important to carefully review contract requirements and consult with legal and insurance professionals to ensure compliance.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 5th April 2024.
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