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Insured Contract

What is an Insured Contract?

An insured contract is a type of contract that involves the transfer of risk from one party to another through insurance coverage. The term refers to a contract that includes provisions that obligate the insurance company to cover losses or damages that result from the insured party's performance of the contract. Insured contracts can take many forms, such as construction contracts, lease agreements, or service contracts. In general, an insured contract is designed to protect both parties by providing financial compensation in the event of a covered loss or liability.