My policyholder has lessors' risk CGL. One of their tenants is negotiating to terminate their lease early. The insured is going to enter a lease termination agreement with their tenant. In that agreement, they are going to cap any liability against the tenant (contract, tort, or otherwise) at $75,000. They wish to know if that runs contrary to the coverage provided in the CGL under an "insured contract". Please advise.

Illinois Subscriber

Even though the insured might cap the liability to $75,000 in the contract, that would have no bearing on the coverage provided under the CGL for the insured's liability under contract. Therefore, the insurance and defense coverage available under the CGL would remain at the same liability limits as are shown in the Declarations per occurrence and aggregate for bodily injury or property damage arising out of liability the insured assumes in the contract.