In our recent updates, we talked about liability for a breach of contract. You may recall that, in the absence of a contractual limitation of liability, such liability is basically unlimited (subject to some restraints under common law – causation, remoteness and mitigation). Further, a contractual indemnity usually removes these common law restraints and therefore results in completely unlimited liability. People commonly believe that insurance offers an answer to liability under common law and indemnities. But does it?