Loss Payable Clause
Definition
- A provision found in some insurance policies that authorizes the insurance company to make payments to a third party, instead of the policyholder or the policyholder's beneficiary, after an insured event. A loss payable clause is commonly used in insurance policies covering assets where a third party has an interest. Mortgage insurance, for example. Also known as a "loss payee clause."
Synonyms
third party loss payable clause, third party payment clause
Related Terms and Acronyms
- Automobile Liability Insurance — Definition,
- Insurance coverage for damages caused in traffic collisions.
- Business Insurance — Definition,
- An umbrella term for insurance that covers various losses that may arise due to the operation of a business.
- Employers Liability Insurance (ELI) — Acronym,
- Insurance purchased to cover businesses for liability from workplace accidents.
- General Liability Insurance — Definition,
- Insurance that protects individuals and businesses from a number of potential liabilities.
- Insurable Interest — Definition,
- Something of sufficient worth and benefit that an individual or entity would have reason to insure against its lost.
- Liability Insurance — Definition,
- Insurance that provides coverage for damages caused by an individual or entity's negligence or legal responsibilities.
- Loss Payee — Definition,
- An entity that is legally entitled to the benefits of an insurance claim.
- Professional Liability Insurance (PLI) — Acronym, Very Important,
- Insurance that covers professionals for liabilities occurring due to negligence or harm in a product or service they provide.
