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📋 '''Insured contract''' is a term found primarily in [[Definition:Commercial general liability (CGL) | commercial general liability (CGL)]] policies that defines specific categories of agreements under which one party assumes the [[Definition:Tort liability | tort liability]] of another — and for which the insurer agrees to extend [[Definition:Liability coverage | liability coverage]]. The concept matters because, by default, many [[Definition:Liability insurance | liability policies]] exclude coverage for obligations a policyholder voluntarily assumes through contract. The insured-contract provision carves out defined exceptions to that [[Definition:Contractual liability exclusion | contractual liability exclusion]], restoring coverage for commonly encountered [[Definition:Hold harmless agreement | hold-harmless]] and [[Definition:Indemnification agreement | indemnification agreements]].

⚙️ Under the standard [[Definition:Insurance Services Office (ISO) | ISO]] CGL form, the definition of insured contract enumerates several recognized agreement types: leases of premises, sidetrack agreements, easement or license agreements (except in connection with construction or demolition on railroad property), obligations required by municipal ordinance, elevator maintenance agreements, and — most broadly — any contract or agreement pertaining to the [[Definition:Named insured | named insured's]] business under which the insured assumes the tort liability of another party to pay for [[Definition:Bodily injury | bodily injury]] or [[Definition:Property damage | property damage]] to a third person. [[Definition:Underwriting | Underwriters]] evaluate the scope of contractual assumptions during the submission process because overly aggressive indemnity clauses can significantly expand the insurer's exposure beyond what the base [[Definition:Insurance premium | premium]] contemplates.

💡 Disputes over whether a particular agreement qualifies as an insured contract rank among the most litigated coverage questions in [[Definition:General liability insurance | general liability]] law. Construction, real estate, and transportation industries routinely rely on contractual risk transfer, and a misalignment between the indemnity clause an insured signs and the coverage the policy actually provides can leave a costly gap. [[Definition:Risk manager | Risk managers]] and [[Definition:Insurance broker | brokers]] who understand the precise boundaries of the insured-contract definition can structure agreements that preserve coverage, while [[Definition:Claims adjuster | claims adjusters]] use the same definition to determine whether a tendered defense obligation falls within policy terms.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Contractual liability exclusion]]
* [[Definition:Commercial general liability (CGL)]]
* [[Definition:Hold harmless agreement]]
* [[Definition:Additional insured]]
* [[Definition:Indemnification agreement]]
* [[Definition:Tort liability]]
{{Div col end}}

Definition:Insured contract - Revision history

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