Insurance 101 – Chapter 4 – Volume 28 – Special Form Exclusions

Special Form Exclusions

Insurance protects against risks, not certainties. The term “risk” does not cover inherent vice or mere wear and tear. The fortuity requirement is a necessary element of the concept of risk.

Some courts have equated a fortuitous loss, within the meaning of an all-risk insurance policy, with a loss arising from external or extrinsic forces, so that losses resulting from an inherent quality or defect in the item insured are not within the scope of coverage. If the loss does not result from inherent defect, ordinary wear and tear, or intentional misconduct, its cause was necessarily external.

Inherent Vice

Inherent vice relates to internal decomposition or some quality which brings about the object’s own injury or destruction, not an extraneous cause.

The following video was adapted from my book, “Insurance Claims A Comprehensive Guide” Published by the National Underwriter Company and is available at the Zalma Insurance Claims Library

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The author and publisher disclaim any liability, loss, or risk incurred as a consequence, directly or indirectly, of the use and application of any of the contents of this blog. The information provided is not a substitute for the advice of a competent insurance, legal, or other professional. The Information provided at this site should not be relied on as legal advice. Legal advice cannot be given without full consideration of all relevant information relating to an individual situation.


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