Elevator Collision Insurance
The term elevator collision insurance or elevator liability insurance is included in business liability insurance policies in order to cover potential damages suffered by the elevator or done by the elevator to the building. In other words, elevator collision insurance offers liability coverage for damage or destruction of a structure, elevator, and/or personal property due to the collision of an elevator.
How does Elevator Collision Insurance Work?
To simplify the concept, let’s look at car insurances for a second. Car insurances are purchased so that in case of an accident, the driver doesn’t have to pay out-of-pocket for injuries or damages resulting from the accident to the other parties involved in the collision. Based on the premium you pay to the insurance company, the company pays for the damages on your behalf. In the same way, someone who owns an elevator pays a premium to the insurance company that is most often a part of a more extensive package. Through the elevator collision insurance, in case an accident occurs due to the elevator, the company can be found liable for the accident. If there were injured parties involved, they could file a suit against the company that has the elevator. Because of the company’s insurance policy, the injured party will deal with the insurance company instead of the company.
The other possible situation is, if the company or individual does not have elevator collision insurance, they are responsible for paying out-of-pocket for the damages. As the court determines these compensations, they can be high and too difficult for one person to cover them on short notice. That is just the risk that companies or individuals can be exposed to in case they don’t have insurance.
In either situation, if the party responsible for the collision does not provide the compensation determined, whether these are made over a period of time or in a lump sum, the court can take action against them.
Popular Insurance Terms
(stop loss) amount over which a health insurance plan pays 100% of the costs in a percentage participation plan. Here, an insured shares costs with the insurer according to some ...
Coverage in which an insurer is not bound to cede and a reinsurer is not bound to accept a risk. A separate reinsurance contract covers each cession. The contract is automatically renewed ...
Agent who is licensed and who markets and services insurance policies in a state in which he or she is not domiciled. ...
Measure of policyholder interest in a variable annuity policy prior to the annuity date. This measure is similar to a unit in a mutual fund. ...
State operated insurance company used in workers compensation insurance in some states where the risks are so great that the commercial insurance companies cannot operate at affordable ...
Modification of the major medical insurance policy that provides coverage for the terminating employee who otherwise would not be covered by a health insurance policy. Usually, this ...
In life and health insurance, person whose physical condition is less than standard or who has a hazardous occupation or hobby. For example, an applicant with a history of strokes is ...
Provision in an insurance policy that indicates what is denied coverage. For example, common exclusions are: hazards deemed so catastrophic in nature that they are uninsurable, such as war; ...
Organization of trial attorneys who specialize in the representation of defendants who become subject to tort actions. Generally, these tort actions involve bodily injury or personal injury ...
Have a question or comment?
We're here to help.