Glossary

Contractors rework coverage insures the cost of tearing out a contractor's work when defects in the work make its inclusion in the project unsafe, as well as the cost of replacing the defective work.

A contractors limitation endorsement is virtually always attached to umbrella policies issued to contractors and construction-related entities imposing limits or exclusions on the umbrella's coverage with respect to certain exposures arising out of the construction operations.

Contractual liability is liability imposed on an entity by the terms of a contract.

Contractual liability insurance covers liability of the insured assumed in a contract.

A contractual liability insurance policy (CLIP) is an important financial instrument necessary to several industries. CLIPs are most commonly associated with service contracts but can be used in a variety of areas. It is a commercial insurance product that covers the contractual obligations of the insured (always a commercial entity).

Contractual risk transfer is the use of contractual obligations such as indemnity and exculpatory agreements, waivers of recovery rights, and insurance requirements to pass along to others what would otherwise be one's own risks of loss.

A contract attorney is lawyer typically hired by a law firm on a contract basis to handle a specific case or several cases. A contract attorney's work is typically of a temporary nature with no guaranteed employment term.

A contract bond guarantees the performance of obligations assumed in a contract by the principal (the party paying the premium for the bond) for the benefit of another contracting party (the obligee).

A contract carrier is a commercial individual or organization carrying persons or property of certain customers only, rather than the goods of or the public in general.

Contract certainty Is a concept used in the London insurance market wherein all terms of a reinsurance agreement must be detailed and agreed upon prior to the inception date of the contract.