The Insuring Clauses
The Insuring Clause is part of the policy that tells you
what it does—what it covers. For example, if it’s a homeowner’s policy it will
say something like we will pay for a “loss”
to “property” resulting from an “occurrence.” Translation: if something
happened and there is damage to your property, the insurer will pay for it.
If you have a general liability policy, the insuring clause might
say: We will pay all sums that the
insured becomes legally obligated to pay as damages because of “bodily injury”
or “property damage” resulting from an occurrence during the policy period.
Translation: If something happens during the effective period of the policy
that injures something or damages some property and you are responsible for it,
the insurer will pay for it. It also should have language similar to the
following: We will have the right and
duty to defend the insured against any “suit” seeking damages. Translation:
if someone is thinking about suing you, we will hire and pay an attorney to
defend you.
This is the meat and potatoes of your policy.
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