Enquire Business Insurance
Contractual Liability
Protection for Responsibilities You Accept Through Contracts
Protection against eligible liabilities you accept under a contract — indemnity clauses, hold-harmless agreements, and assumed obligations.
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Cover options
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Underwriters
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Claims support
Quick overview
It responds to eligible liabilities you take on under a contract — such as an indemnity or hold-harmless clause — that a standard public or general liability policy typically excludes.
Why it matters
Why Does Contractual Liability Matter?
A contract may require your business to accept indemnity or hold-harmless obligations, and if an incident occurs, those obligations can expose the business to significant financial costs. Appropriate insurance can help manage eligible contractual risks.
You accept liability every time you sign
A contract may require your business to accept indemnity or hold-harmless obligations. If an incident occurs, those obligations can expose the business to significant financial costs.
For businesses that contract regularly
This cover can be relevant to businesses that regularly enter into contracts with clients, suppliers, contractors, landlords, or other organisations.
Who it's for
Who this cover is for
- Contractors and subcontractors
- Suppliers under framework agreements
- Businesses signing commercial leases
- Service providers with indemnity clauses
- Event organisers and venue hirers
Cover options
Your cover options
Choose the option that matches your needs. Exact terms, limits, and extensions vary by insurer and policy.
01
Assumed Indemnities
Covers your obligation to indemnify a contracting party for defined losses under an indemnity or hold-harmless clause.
02
Lease & Licence Clauses
Responds to liability accepted under property leases, equipment hire, and licence agreements.
03
Defence & Settlement
Covers the legal costs of contesting a contract-based claim and any damages agreed or awarded.
Protection
What this cover protects against
What applies to your policy depends on the cover level you choose and any extensions added.
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Assumed indemnities
Your obligation to indemnify a contracting party for defined losses.
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Hold-harmless clauses
Agreements not to hold the other party responsible for certain claims.
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Lease & licence terms
Liability accepted under property leases and equipment hire.
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Defence & settlement
Legal costs of contesting a contract-based claim, and any damages agreed.
Key benefits
What you get with the cover
Fills a common exclusion
Public and general liability policies usually exclude liability assumed under contract — this cover addresses it directly.
Supports tendering
Lets you sign the indemnity terms tenders and framework agreements demand.
Reviewed against your contracts
Cover is arranged with your actual contract wording in mind.
Defence costs included
The insurer funds the defence of claims brought under the contract.
Exclusions
What's not covered
Uncapped or unreasonably broad indemnities
Liability for the other party's own negligence where not permitted
Fines and penalties
Deliberate breach of contract
This is a general list. Your policy wording sets out the full exclusions that apply.
Getting covered
What you'll need
To take out cover
- Business registration documents
- Copy of the relevant contract / agreement
- Details of contractual obligations
- Description of business activities
- Requested level of cover
- Previous claims / insurance information where applicable
If the other party notifies you of a claim under the contract, do not respond or admit liability — send the notice and the contract to Cush straight away.
Requirements may vary depending on the insurer, type of cover, risk involved, and individual circumstances. Our team will advise you on the specific documents required for your policy.
Glossary
Common terms explained
Hold-Harmless Clause
A contract term where one party agrees not to hold the other responsible for certain losses or claims.
Assumed Liability
Liability you take on by agreement that the law would not otherwise impose on you.
FAQ
Frequently asked questions.
The essentials on contractual liability — what it covers, what you'll need, and how claims work. More on the FAQ page.
See all FAQsIsn't this already covered by my public liability policy?
Usually not. Most liability policies exclude liability 'assumed under contract' beyond what common law would impose, which is exactly what this cover addresses.
Do you need to see my contracts?
Yes — cover is arranged around your actual indemnity and hold-harmless wording, so sharing the contract terms is part of the process.
Does it cover any clause I sign?
No. Very broad or uncapped indemnities may be limited or excluded. Your advisor will tell you what can and can't be covered before you sign.
Flexible cover
Reviewed against your contracts
Cover is arranged around your actual indemnity and hold-harmless wording. Talk to Cush Insurance Agency before signing or relying on contractual liability arrangements so you can understand your insurance position.
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Why Arrange Contractual Liability Through Cush?
We read the indemnity and liability clauses in your contracts, identify what your standard policies won't cover, and arrange terms that match the obligations you're actually signing. Talk to Cush Insurance Agency before signing so you understand your insurance position.