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
Account established to manage the assets of a minor. This account is under the auspices of a custodian (either an individual or an institution). The gift tax exclusion would apply on any ...
Circumstance under which the insured maintains that, if an insurance policy covers at least two scheduled items of real or personal property, in the event of a loss applicable coverage ...
In insurance, individual with rightful possession of an insurance policy, usually the policyowner. ...
Association of independent agents whose objective is to further the interests of these agents through education, lobbying, and professional ethics. ...
Technique designed to permit the exchange of a life insurance policy that has an outstanding loan charged against it for another life insurance policy on a tax-free basis. The procedure is ...
Standard set under the occupational safety and health act that sets allowable levels of worker exposure to such toxic substances as asbestos, certain chemicals, and radiation. In many cases ...
Single policy on the insured's property for: two or more different kinds of property in the same location; same kind of property in two or more locations; two or more different kinds of ...
Coverage to indemnify an owner for whom work was done if the completed work is not free of worker's liens for labor and material. ...
Legal decision wherein proceeds of a life insurance policy on which the decedent's corporation paid the premiums within three years of his or her death are not includable in the decedent's ...
Have a question or comment?
We're here to help.