Does General Liability Cover Breach of Contract?
No for a claim that you simply failed to keep a promise; CGL may still address a separate covered injury or property-damage claim.
CGL does not pay simply because you failed to meet a contract promise. The ISO form excludes some liability you assume by contract, with limited exceptions; a separate claim for bodily injury or physical property damage is assessed under its own coverage terms.
If a customer alleges delay, a missed deliverable, or work that failed to meet specifications, check professional liability and the contract’s remedies. Review the actual contractual-liability wording and any endorsements before relying on an insurance clause in your agreement.
Related Coverage
Sources
- Commercial general liability insurance. Insurance Information Institute; What commercial general liability insurance covers; Coverage A, B and C; Additional liability coverages to consider. Accessed 2026-09-25.
- Commercial General Liability Coverage Form, CG 00 01 12 07. ISO; specimen hosted by Hiscox; Coverage A I.A pp.1–5; Coverage B I.B pp.6–7; Who Is An Insured II pp.9–10; Limits III p.10; Conditions IV pp.10–12; Definitions V pp.12–16. Accessed 2026-09-25.
