What Is A Coverage Agreement

These provisions are subject to important conditions that have a practical impact on their coming into force and on what insurers and reinsurers must do. Asset policies are either specified hazards or all hazard policies. A specific risk policy defines the causes of damage covered: fire, burglary, terrorism, flood, earthquake or accident. In some risk insurance policies, the onus is on the insured to prove that the damage was caused by a particular hazard. An all-hazards policy covers damage caused by all hazards except those listed as exclusions. Regardless of the obligation to prove that the damage falls within the scope of coverage, the insured does not have this obligation to prove that the damage was caused by a particular risk, but the obligation to the insurer to prove that an excluded risk caused the damage. The granting of coverage and the terms of the policy are of paramount importance. It is important to understand how the policy is written and structured…