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
Provision in a property, liability, or health insurance policy stipulating the extent of coverage in the event that other insurance covers the same property. ...
Rate of return computed by dividing the current annual dividend (if a stock) or annual coupon amount (if a bond) by the amount paid for that financial instrument. ...
Personal view regarding how losses occur and the validity of loss prevention and reduction; also, whether an individual is a risk taker or a risk avoider. For example, if a driver takes the ...
Common law rule of negligence that imposes liability on an individual who had one last opportunity to avoid an accident but did not take it. An example is a driver who could have avoided ...
Relationship of the frequency of deaths of individual members of a group to the entire group membership over a particular time period. ...
Value or property given by an individual to a trustee who holds and administers it for the benefit of the donee (recipient of the gift). For example, a father entrusts a life insurance ...
Accrediting body for the CPCU (Chartered Property and Casualty Underwriter) designation. The institute provides undergraduate and continuing education in property and casualty insurance ...
Circumstance that produces the loss. ...
Model state regulation that governs method of selling life insurance to prevent fraud or misrepresentation by agents or insurers. A life insurance disclosure model regulation to help buyers ...
Have a question or comment?
We're here to help.