What is a contractual liability exclusion?

A contractual liability exclusion is a clause in an insurance policy that determines whether an insurance company will cover damages incurred in a contractual dispute. This clause covers the insured party and excludes them from being held liable for any damages that occur due to a contract dispute. These clauses are especially important in North Carolina, considering the state is known for its strong contractual agreements. Contractual liability exclusions stipulate that an insurance company will not provide coverage if an agreement is broken, whether it is the insured party or a third party that has breached the agreement. If the insured party is found to be liable for damages, the insurance company will not provide coverage. This means that the insured party is responsible for the damages, with no financial assistance from the insurance company. Overall, a contractual liability exclusion is an important part of an insurance policy in North Carolina. It is essential for understanding the limits of protection provided by the policy and helps to avoid any unnecessary litigation that could arise from a contract dispute. As long as the insurance policy is properly understood, the insured party can be sure that they are protected from potential contractual liabilities.

Related FAQs

What is a claim for bad faith?
What is the statute of limitations for filing a liability claim?
What is a co-insurance clause?
What types of insurance claims are there?
What is an act of God exclusion?
What are the common causes of action in an insurance claim?
What is a reinsurance agreement?
What is a collateral source rule?
What is an affirmative defense?
What is an insurance claim?

What is a contractual liability exclusion?

Related FAQs

Related Blog Posts