Contractual liability on a Certificate of Liability Insurance (COI) covers risks assumed through contracts, protecting the insured from liabilities arising from agreements like indemnity clauses or hold harmless provisions. Including this coverage ensures that claims related to these obligations are covered by the insurer.
It’s important to note that contractual liability is not always included in a general liability policy. It is recommended to verify its coverage by checking that "Contractual Liability" is listed as a coverage option in the General Liability section of the COI. If this coverage is absent, there will also be no Additional Insured coverage, which is a standard industry requirement.