Contractual Liability

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Real-Life Claim Scenario: Joe rented a location for a local science fair event. The facility rental contract specified that Joe, the event holder must indemnify the facility for any damages incurred for bodily injury or property damage arising from the negligence of the event holder. During the science fair, a child was bitten by a boa constrictor in one of the educational displays. The child’s family sued the facility owner for $280,000 for medical costs and emotional distress. The facility owner then filed a cross-complaint against Joe, the event holder. Fortunately, Joe had secured Contractual Liability coverage and his policy paid to defend the case in court and paid the final damages awarded.

Estimated cost with Contractual Liability: $25
Estimated cost with NO Contractual Liability: $280,000

A Smart Solution:
RVNA Contractual Liability coverage option

Most liability policies have provisions that exclude coverage for contractual liability. Contractual Liability is an optional coverage available when purchasing Event Liability Insurance.

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