Securian is introducing a new contractual liability insurance program in California designed to cover “failure to perform” risk tied to designated contracts.

The filing, submitted on March 31, 2026, outlines a new product that provides financial protection when a company fails to meet its contractual obligations. The program is set to take effect for both new and renewal business on May 1, 2026.

At its core, the policy reimburses losses when an insured entity—such as a service contract provider, dealer, or manufacturer—cannot fulfill commitments made to customers. If obligations remain unmet for 60 days after proof of loss, contract holders can file claims directly with the insurer, which will then cover the loss up to the limits defined in the underlying contract.

The coverage is structured as contractual liability insurance, meaning it does not defend the insured in legal proceedings but instead focuses strictly on reimbursing financial losses tied to unfulfilled contractual duties. It also excludes broader liabilities such as negligence, product defects, or punitive damages, limiting protection to clearly defined contractual obligations.

From a pricing standpoint, the program applies a base rate of 2% of the contract price per unit, with potential adjustments of up to ±25% based on factors like loss experience, expense levels, and portfolio mix.

Securian positions the product as a backstop for businesses offering service contracts or similar agreements, effectively stepping in if the obligor becomes impaired or insolvent. The filing notes that the company has not previously written this product in California, though it has been approved in other states including Colorado, Florida, Minnesota, and Oregon.

The program launches with no prior loss experience, and the company indicates that rates are designed to be adequate without being excessive or unfairly discriminatory.