Act of God (Force Majeure)

In insurance terms, an Act of God refers to an accident or other natural event caused without human intervention that could not have been prevented with reasonable foresight – occurrences like earthquakes, tsunamis, and other natural disasters. An Act of God clause, which is a type of force majeure clause, limits – or may eliminate entirely – any liability by both parties for damages, injuries, or loss in the case a qualifying event. Some more common events, such as lightning storms or hurricanes, are often covered by a standard policy, but losses caused by a flood or earthquake are not – although specific coverage may be available for an additional premium in some instances.

It should be noted that ‘Act of God’ is a broad term for a type of event. Insurance policy language will include a schedule of specific events and the relevant coverage or exclusion thereof.