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What Is Force Majeure?

Insurance exists in order to provide people options for when the unexpected happens. For example, car insurance provides people financial security with regards to their car in the event of a car accident. Insurance is not just limited to car accidents but includes a variety or areas and industries such as medical, health, business, death, property, and all others. Companies issue insurance based on the financial status of the consumer as well as other circumstances that relate directly with the area or property that is to be insured. When taking out insurance, a consumer enters into a contract with the insurance company. A term most often found in these contracts is force majeure, a French term that translates to superior force.

Force majeure, also known as cas fortuity or casus fortuitus, is a legal term found in insurance contracts that details the insurance policy of the consumer when it comes to extraordinary or natural events such as hurricanes, typhoons, wars, and others. This term often develops into a clause in an insurance contract. This clause details that parties involved in the contract, both consumer and insurance provider, are free from liability in the event of force majeure. This means that any event that is classified under force majeure is not subject to insurance. For example, a hurricane destroys a person’s home. The insurance provider of the property is not legally obligated to provide some form of compensation. Thus, any event or situation that is a result of an act of God is not covered by insurance.

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