Liability Insurance Has Many FormsFebruary 21, 2011 - Author: willk - Comments are closed
Liability insurance has many forms that you need to understand before you sign. Typically, the person seeking coverage for liability fails to think about the facts. Most of the forms are worded to favor the insurance company or the business. If you fail to read these, you will make a grave error. There may be aspects of the form that you might want to remedy. Making a simple request to the person issuing the form takes care of this. Granted, they can refuse to comply, but it is always best to try to get a primary before signing. That way you know for sure before signing. This is in your best interest. Let’s take a look at the sort of forms that you might encounter.
Warranties are generally implied in most standard contracts of insurance. When you do not disclaim any particular aspect of your contract, you are at risk for that not being covered. So it is extremely important, for you before signing to specifically review the form coverage and ensure that every aspect of liability is specifically covered to your advantage.
This is done by warranties. When you are presented with the liability insurance form, review it and make sure that every aspect is covered specifically to your advantage. Make sure also that you are aware of the fact that if you see that the following wording “no implied warranties,” is not in your contract. If that is listed in your insurance contract, that wording basically means that they are exempt from covering the aspects that are typically covered by default in the law. In essence, they are trying to skirt the law. You don’t want that.
One other aspect to keep your eye open for on any insurance form, is “hold harmless”. This is considered to be an “indemnity provision”, which allows the company offering the liability coverage, a chance to get out of paying a dime.
While it might seem extremely shocking to be aware of this, that is the reason typically that most accidents require that you get a lawyer. The insurance companies are simply not set up to pay you the money that they owe you. In fact, it is rather their job to avoid paying you anything at all. The many forms that you will encounter when you get coverage are geared specifically to protect them in this manner. The general public typically does not understand this. Now you know.
Limitations of Liability
Most insurance forms that offer liability coverage will contain “limitations of liability”. These are little tricks that insurance companies include in their contracts that cover all the loose ends of making sure that they don’t have to pay. Look for “limitations of liability”. Review this section very carefully and make sure that all aspects of the sort of insurance that you might require are actually covered.
There are times when you get liability insurance coverage that you might want to get additional coverage added onto your contract. This is to specifically address these “limitations of liability”, which preclude the coverage of those little things that are important to you specifically as an individual. That will cost you extra money in the short term. It will also save you a huge amount of money and protect you from bankruptcy in the long run. So it is very much well worth it.
Categories: Liability Insurance