What does Contractual Liability mean? Read on to discover the definition & meaning of the term Contractual Liability - to help you better understand the language used in insurance policies.
A contractual liability is a responsibility or an obligation that a party must adhere to as per the terms of a contract that the party agreed to and signed. In the context of insurance, parties often purchase contractual liability insurance to help pay for any financial losses that may result from their failure to deliver or perform a service as stipulated in a contract they sign.
We hope the you have a better understanding of the meaning of Contractual Liability.