What does Breach of Contract mean? Read on to discover the definition & meaning of the term Breach of Contract - to help you better understand the language used in insurance policies.
Breach of Contract
A material failure to fulfill one's contractual obligations. Insurance policies typically do not cover liabilities arising out of a breach of contract because it is viewed as a business risk within the control of the insured. In some cases, most notably construction defect claims, this has led to extensive litigation over what constitutes a breach of contract versus ordinary negligence.
We hope the you have a better understanding of the meaning of Breach of Contract.