This is a summary of the insurance company`s key promises, and indicates what is covered. In the insurance agreement, the insurer undertakes to do certain things, such as paying losses for guaranteed risks, providing certain services or defending the insured in liability action. There are two basic forms of insurance: contractors often hire elevator service contractors to maintain elevators in their buildings. In a typical elevator maintenance contract, the contractor agrees to compensate the contractor for the costs of third-party claims resulting from the contractor`s lack of proper maintenance of the contractor`s elevator. Insurance of agreements is necessary in the event of a dispute over whether a particular injury is covered or not. Both the insurance company and the policyholder should be able to determine whether damage is covered from the insurance policy. Although the insurance of the agreements is aimed at resolving these problems, differences of opinion remain on the terms of the insurance agreement. This often results in disputes in which each party presents competing interpretations of the insurance agreement. Subscribe to America`s largest dictionary and get thousands of other definitions and advanced search – ad-free! Suppose your company rents a Building from Prime Properties.
The lease requires your company to compensate Prime Properties for damages sustained during the term of the building lease. One night, there is a fire that damages the building. As the damage was caused during the rental period, you are contractually required to reimburse Prime for repair costs. If the owner asks for payment, your liability policy does not cover the damages. An agreement to compensate the building owner for the damage caused by the fire is not an insured contract. In 1941, the insurance industry has begun to move to the current system, in which the risks covered are first generally defined in an “all risk” or “all sums” in order to guarantee a general insurance agreement (e.g.B. “We pay all amounts that the insured has legally been required to pay for damages”), and then are limited by subsequent exclusion clauses (e.g. B “This insurance does not apply”).  If the insured wants coverage for a risk taken by an exclusion on the standard form, the insured may sometimes pay an additional premium for the approval of the policy that suspends the exclusion.