An insuring agreement is a fundamental component of an insurance policy that outlines the scope of coverage provided by the insurer, including the types of risks or perils that are covered, the parties involved, and the conditions under which a claim can be made. It serves as the foundation of the policy, detailing the insurer's obligation to indemnify the policyholder for losses incurred from specified events.
Provided, however, that if any amounts are inserted below opposite specified Insuring Agreements or Coverages, those amounts shall be controlling. Any amount set forth below shall be part of and not in addition to amounts set forth above. (If an Insuring Agreement or Coverage is to be deleted, insert “Not Covered.”)
INSURING AGREEMENTS. FIDELITY. (A) Loss resulting directly from dishonest or fraudulent acts committed by an Employee acting alone or in collusion with others. Such dishonest or fraudulent acts must be committed by the Employee with the manifest intent: (a) to cause the Insured to sustain such loss; and (b) to obtain financial benefit for the Employee and which, in fact, result in obtaining such benefit.
As used in this Insuring Agreement, financial benefit does not include any employee benefits earned in the normal course of employment, including salaries, commissions, fees, bonuses, promotions, awards, profit sharing or pensions.
In case of loss of, or damage to, any Property other than Money, securities, books of account or other records, or damage covered under Insuring Agreement (B)(2), the Underwriter shall not be liable for more than the actual cash value of such Property, or of items covered under Insuring Agreement (B)(2). The Underwriter may, at its election, pay the actual cash value of, replace or repair such property. Disagreement between the Underwriter and the Insured as to the cash value or as to the adequacy of repair or replacement shall be resolved by arbitration.
The INSURING AGREEMENTS section is amended by the addition of the following new Insuring Agreement: DESTRUCTION OF DATA OR PROGRAMS BY VIRUS: Loss resulting directly from the malicious destruction of, or damage to, Electronic Data or Computer Programs owned by the Insured or for which the Insured is legally liable while stored within a Computer System if such destruction or damage was caused by a computer program or similar instruction which was written or altered to incorporate a hidden instruction designed to destroy or damage Electronic Data or Computer Programs in the Computer System in which the computer program or instruction so written or so altered is used. The liability of the Underwriter shall be limited to the cost of duplication of such Electronic Data or Computer Programs from other Electronic Data or Computer Programs which shall have been furnished by the Insured. In the event, however, that destroyed or damaged Computer Programs cannot be duplicated from other Computer Programs, the Underwriter will pay the cost incurred for computer time, computer programmers, consultants, or other technical specialists as is reasonably necessary to restore Computer Programs to substantially the previous level of operational capability.
AMEND COUNTERFEIT CURRENCY OR MONEY INSURING AGREEMENT RIDER: It is agreed that Insuring Agreement (F) COUNTERFEIT CURRENCY or COUNTERFEIT MONEY, as applicable, is replaced with the following: Loss resulting directly from the receipt by the Insured, in good faith, of any Counterfeit Money of the United States of America, Canada, or any other country.
Damages resulting from any civil, criminal or other legal proceeding in which the Insured is adjudicated to have engaged in racketeering activity except when the Insured establishes that the act or acts giving rise to such damages were committed by an Employee under circumstances which result directly in a loss to the Insured covered by Insuring Agreement (A). For the purposes of this Exclusion, “racketeering activity” is defined in 18 United States Code 1961 et seq., as amended;
INSURING AGREEMENTS. A. FIDELITY. Loss resulting directly from any Dishonest or Fraudulent Act committed by an Employee, committed anywhere and whether committed alone or in collusion with other persons (whether or not Employees), during the time such Employee has the status of an Employee as defined herein, and even if such loss is not discovered until after he or she ceases to be an Employee; and EXCLUDING loss covered under Insuring Agreement B.
Loss of Property resulting directly from any Mysterious Disappearance, or any Dishonest or Fraudulent Act committed by a person physically present in an office or on the premises of the Insured at the time the Property is surrendered, while the Property is (or reasonably supposed or believed by the Insured to be) lodged or deposited within the Insured’s offices or premises located anywhere, except those offices excluded by Rider; and EXCLUDING loss covered under Insuring Agreement A.
An insuring agreement is a critical component of an insurance policy that outlines the scope of coverage provided by the insurer. It serves as the foundation of the insurance contract by clearly specifying the risks that the insurer agrees to cover. This section highlights the responsibilities and obligations of the insurer in relation to the insured party.
The insuring agreement is often structured in straightforward language to minimize ambiguities regarding what is and isn’t covered. It includes definitions of key terms, descriptions of perils covered, and the situations under which the coverage applies.
An insuring agreement is utilized when drafting an insurance contract. It is essential for determining the precise coverage terms and conditions. You should refer to, and use, the insuring agreement:
Writing an insuring agreement involves careful consideration of the coverage specifics and an understanding of insurance law. Here are some steps to follow:
Example: “ABC Insurance Company agrees to indemnify the insured against losses directly resulting from theft occurring within the insured premises, provided that the premises are secured by an operational alarm system at the time of the theft.”
Insuring agreements are typically found in various types of insurance contracts, including but not limited to:
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Dive deeper into the world of clauses and learn more about these other clauses that are used in real contracts.
An integration clause, also known as a merger clause, ensures that the written contract represents the complete and final agreement between the parties by superseding all prior negotiations, discussions, or agreements, whether written or oral. This clause prevents any party from claiming that external statements or documents should be considered part of the agreement, thus providing clarity and reducing potential disputes.
Intellectual property indemnification is a contractual provision where one party agrees to compensate the other for any losses or damages arising from third-party claims of intellectual property infringement. This clause aims to protect the indemnified party from legal liabilities related to the use, production, or distribution of potentially infringing intellectual property.
The intellectual property ownership clause outlines the rights and responsibilities regarding the ownership and control of intellectual property (IP) created or used within the scope of a contract. Typically, it specifies whether the IP rights are retained by the creator, transferred to another party, or shared between parties involved, thereby preventing potential disputes over IP rights.
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