What is a contractual liability insurance policy?

A contractual liability insurance policy would protect the contractor from losses that the building contract protects the city from. Another important aspect of the contractual liability is understanding that the true meaning of the terms "hold harmless," "indemnify," and "defend" differ. These terms are common in contract language.

Do all businesses need contractual liability insurance?

All businesses take on contractual liability, but they don’t all need contractual liability insurance. If you assume liability only when signing the contract, contractual liability insurance covers the financial risk you take on when entering into an agreement with another party.

Why is contractual liability insurance important?

The agreement means your company will assume financial responsibility for claims. This is why contractual liability insurance is important. Without it, you'd have to cover claims out of pocket. Contractual liability insurance is a coverage that you can add to a general liability insurance policy. What Does Contractual Liability Insurance Cover?