Breach of contract liability insurance, also known as contractual liability insurance, is a type of insurance coverage that protects businesses from financial losses arising from a breach of contract. This type of insurance typically covers legal expenses and damages that a business may be required to pay as a result of a breach of contract, such as failing to meet contractual obligations or violating the terms of a contract.

The coverage provided by breach of contract liability insurance varies depending on the specific policy and may cover various types of contracts, including construction contracts, service contracts, lease agreements, and more. This type of insurance is typically purchased by businesses that engage in contractual agreements with other parties, to protect against the potential financial risks associated with a breach of contract.

It’s important to note that breach of contract liability insurance does not cover intentional breaches of contract or fraudulent activity, as these actions are typically excluded from coverage.