Which entity provides coverage against contractual liabilities?

Commercial General Liability Insurance (CGL) is designed to protect businesses and individuals against a range of liability claims, including those arising from contractual obligations. One of the key features of CGL is that it covers liabilities that may arise from contracts that the insured has entered into, provided that such liabilities are not explicitly excluded from the policy. This is particularly important for businesses that often enter into contracts for services, leases, and other obligations where they might be held liable for damages or losses sustained by third parties as a result of a breach of contract or negligence.

In contrast, other types of insurance listed do not specifically cover contractual liabilities. Workers' Compensation Insurance focuses on providing benefits to employees who suffer work-related injuries or illnesses, rather than covering contractual obligations. Homeowners Insurance primarily covers personal property and liability related to residential property but does not extend to contractual liabilities. Automobile Liability Insurance provides coverage for bodily injury and property damage resulting from the operation of vehicles, which is also outside the realm of contractual liability. Therefore, the primary focus of CGL on contractual obligations makes it the best choice for coverage against such liabilities.