What does Force Majeure Insurance mean? Read on to discover the definition & meaning of the term Force Majeure Insurance - to help you better understand the language used in insurance policies.
Force Majeure Insurance
Provides coverage for financial losses arising out of the inability to bring a project to completion. The coverage encompasses delays as well as total termination of the contract resulting from events totally outside the control of the contractor (i.e., fire, earthquake, war, revolution, flood, and epidemics). Types of losses covered by the policy include continued debt servicing, loss of income, ongoing fixed costs, spoilage, and related contingencies. The coverage has a very limited domestic market but is commonly placed as a political risk coverage for contractors working in foreign countries.
We hope the you have a better understanding of the meaning of Force Majeure Insurance.