What does Extra contractual Obligations mean? Read on to discover the definition & meaning of the term Extra contractual Obligations - to help you better understand the language used in insurance policies.
Extra contractual Obligations
The requirement under a policy that the insurer pay certain losses or expenses not arising from the insuring agreement but from externally imposed obligations for example, fines from a court or regulatory body. If ECOs are covered under a reinsurance agreement, the reinsurer pays punitive damages imposed on the insurer.
We hope the you have a better understanding of the meaning of Extra contractual Obligations.