What is a contractual liability exclusion?

A contractual liability exclusion is a clause in an insurance policy that prevents the insurer from having to cover any costs related to contractual agreements. This means that if the policyholder is found liable for any costs related to a contract they have entered into, the insurer is not responsible for covering them. This clause is a common feature in most insurance policies and helps to limit the insurer’s liability if the policyholder is found responsible for any costs related to a contract. In Washington, a contractual liability exclusion specifically exempts the insurer from covering any costs related to a contract the policyholder has entered into. This means that the policyholder is responsible for any costs that arise from the contract and the insurer does not have to pay for them. This clause is especially common in liability insurance policies and helps to prevent the insurer from having to cover costs outside of what the policy covers. Overall, a contractual liability exclusion is a vital part of any insurance policy and helps to limit the insurer’s liability while still protecting the policyholder. Without this clause, the insurer could be held liable for any costs related to contracts the policyholder has entered into and would have to cover the costs regardless. This clause helps to protect everyone involved in the agreement and ensures that both the policyholder and insurer are properly protected.

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What is a contractual liability exclusion?

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