The Act Of God!
What Is an Act Of God?
An act of God describes an event
outside of human control or activity.
It’s usually a natural disaster, such as
a flood or an earthquake. A policy
usually specifies which particular acts
of God it covers.
In business, the phrase “act of God”
is not associated with any particular
religion or belief system. Contractual
language referring to acts of God
is known as force majeure clauses,
which are often used by insurance
companies. These clauses typically
limit or remove liability for injuries,
damages, and losses caused by acts
of God.
KEY TAKEAWAYS
• An act of God is an uncontrollable
event, such as severe storms, not
caused nor controlled by humans..
• Acts of God do not absolve people
from a duty to exercise reasonable
care.
• Policyholders should review their
policy for coverages and exclusions
pertaining to acts of God.