Which coverage would be best for a prospective insured wanting liability coverage for assumed contracts?

The best coverage for a prospective insured wanting liability coverage for assumed contracts is contractual liability coverage. This type of coverage specifically addresses the liabilities that arise from contracts where the insured has agreed to assume responsibility for certain risks.

Assumed contracts are those where the insured agrees to handle liabilities that arise from particular obligations outlined in a contract with another party. Contractual liability coverage is designed to protect against losses that occur due to these obligations, often providing defense costs and damages in the event of a lawsuit stemming from these contractual agreements.

In contrast, general liability primarily covers general business risks, including bodily injury, property damage, and personal injury, but may not provide the specific protections related to contractual obligations. Errors and omissions insurance focuses on professional liability, addressing claims arising from mistakes or negligence in the provision of professional services, which is not applicable to assumed contracts. Liability insurance, in a general sense, covers a range of liabilities but lacks the specificity needed for assumed contractual risks. Therefore, for comprehensive protection in the context of assumed contracts, contractual liability coverage is the most appropriate choice.