What types of agreements are classified as "insured contracts" under Commercial General Liability?

The correct classification of "insured contracts" under Commercial General Liability policies specifically includes certain types of agreements that shift the liability for bodily injury or property damage. These agreements are intended to protect the insured from the financial consequences of certain contractual obligations.

Leases, sidetrack agreements, and elevator maintenance agreements fall into this category because they involve obligations that may assume liability for third-party claims. For instance, a lease agreement may require a tenant to indemnify the landlord for certain types of damages or accidents that occur on the leased premises. Sidetrack agreements, which involve railroads and typically pertain to the use of tracks by businesses, can also contain provisions that shift liability. Elevator maintenance agreements often involve contractual obligations where a party may be liable for maintaining safe conditions, thus exposing them to claims if negligence occurs.

Understanding the scope of these "insured contracts" is crucial for business owners, as having coverage for these types of agreements can significantly mitigate potential risks associated with contractual liabilities.