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
Part of the Balanced Budget Act of 1997 that permits medicare recipients to select coverage among various private health care plans to include HMOS, PPOS, POINT-of-SERVICE (POS), MEDICAL ...
Provision of a reinsurance contract that states that the reinsurance company remains liable for its predetermined share of a claim submitted by an insured, even though the primary insurance ...
Number of individuals exposed to the risk of illness, sickness, and disease at each age, and the actual number of individuals who incurred an illness, sickness, and disease at each age. ...
Payment of premiums before their due date. In pension plans, premium payments are allocated to the payment of future benefits prior to benefits becoming payable. ...
Same as term Assignment Clause: feature in a life insurance policy allowing a policyowner to freely assign (give, sell) a policy to another or institution. For example, in order to secure a ...
Relinquishment of rights in an insurance policy or pension plan. For example, by withdrawing contributions to a pension plan, an employee forfeits future retirement benefits under that plan. ...
Status in which an insurance company holds funds of its insureds (the payment of premiums) in trust, and through an insuring agreement promises to make all benefit payments for which it has ...
Term used in the reinsuring of disability income insurance policies in that, after an extended period of time expires (in addition to the elimination period found in the disability income ...
Same as term Civil damages Awarded: sums payable to the winning plaintiff by the losing defendant in a court of law; can take any or all of these forms: general, punitive, and special. ...
Have a question or comment?
We're here to help.