Do you know what particular clauses are and what they can do for you when taking out an insurance?
Hello!
The day has come to share information with you here on our #MondayBlog!
Today we are going to explain about one of the three conditions present in any insurance, the particular conditions, which are presented in your policy through particular clauses.
Have you seen these clauses included in your insurance contract?
Well, whether you've seen it or not, it shows up for three reasons. The first, and most common, is to restrict your coverage. That's right, if you offer an insurer a risk outside the standards practiced for a certain product, they can use the particular clauses to establish what will not be covered, within your risk, if a claim happens.
The second way of noticing its presence is when the insurer wants to ratify, that is, make it clear that something already excluded in the general or special conditions is not covered at all. This tactic is used mainly when we are talking about a very complex situation that can lead to confusion, and the insured may sue the insurer in court claiming that they did not fully understand the terms of the contracted insurance. To avoid this type of situation, insurers started to use particular clauses to reaffirm exclusions.
The third and last way of using a particular clause is in the purchase of exclusions or conditions not provided for in the general conditions of the product. In this situation, there is a financial value determined for the purpose of extending some basic or additional coverage, or granting one of the general exclusions present in the general conditions.
After this technical explanation, let's go to some examples? We believe that everything is easier with examples.
Let's say you're on a new project, an action show, and you need some different acceptances. So in your questionnaire, you inform:
“Action series that will be filmed in Switzerland, Congo, Israel, Brazil and California. Our lead actor will be doing most of the scenes without a stunt. He's going to jump out of a plane, out of a building and do parkour, and this actor has experience with all these activities.”
We have already started with a special acceptance for coverage outside Brazil, followed by coverage for countries at war or conflict.
Then we have the main actor thrown in the No-Show coverage, because if he's the main one, that means if he can't shoot, gets sick or gets hurt, bye bye footage of the day. And this actor will do dangerous scenes, jumping from planes, buildings and parkour.
The insurer then has two paths, saying that it does not want your risk. Or use the particular clauses, to select what they want or don't want to cover.
For example, it can extend coverage to the countries you report, but exclude damages and losses arising from war and terrorism. Or simply get Congo and Israel out of the insurance.
The insurer may agree to cover your No-show actor by excluding dangerous activities or accept the risk by requesting confirmation of his experience in these situations and determining actions you must take to minimize or eliminate potential problems.
Remember, however, that when the insurer accepts some risk outside the product scope, this translates into additional premium charges.
Therefore, it is important to know what are the usual exclusions of your insurance in order to try together with your broker to contract these exclusions if necessary.
So, did you like today's information? We hope you did.
See you in our next #MondayBlog!
Have a great week, lovers!
Prospecto Seguros
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