Entire Contract Clause
What Does Entire Contract Clause Mean?
An entire contract clause in an insurance policy specifies that the agreement between the insurer and the insured is confined strictly to the terms outlined in the contract. This clause ensures that both parties are bound only by the provisions explicitly stated in the policy, excluding any external agreements or stipulations.
Insuranceopedia Explains Entire Contract Clause
Entire contract clauses are particularly significant in legal disputes. For instance, if a policyholder sues an insurance company over an issue not covered in the contract, the presence of an entire contract clause often favors the insurer. This is because the clause limits the insurer’s obligations strictly to the terms specified in the contract. Insurance contracts containing entire contract clauses typically include details such as endorsements, benefits, conditions, and other pertinent provisions, ensuring clarity and limiting disputes to the agreed-upon terms.
