What does Escape Provision mean? Read on to discover the definition & meaning of the term Escape Provision - to help you better understand the language used in insurance policies.
Provision that allows a contracting party to avoid a limitation on the other party's liability by paying an additional fee. The extra fee may be used to purchase insurance to cover the additional risk or to finance the retention of the risk. It can be found sometimes embedded in a limitation of liability provision in a standard commercial contract form.
We hope the you have a better understanding of the meaning of Escape Provision.