A general liability policy excludes liability the insured assumes by contract, then gives that coverage back for liability assumed in an insured contract. An insured contract is best described as:
Explanation
The contractual liability exclusion is given back only for a listed set of agreements: leases of premises, sidetrack agreements, easement or licence agreements, obligations to indemnify a municipality where required by ordinance, elevator maintenance agreements, and the tort liability of another assumed in a business contract. Coverage turns on the agreement fitting that defined class, not on the insurer having pre-approved it. A performance bond is surety, a three-party guarantee, and not liability insurance at all.
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