Force Majeure

Life is unpredictable. Sometimes, events like hurricanes, floods, fires, or even government shutdowns can make it impossible to meet your obligations, like paying bills, running a business, or fulfilling a contract. These kinds of situations are called force majeure events.

Not every unexpected event counts as a force majeure event, though. It has to be something truly extraordinary and out of anyone’s control. Understanding the force majeure legal definition and how it applies to your contracts or insurance policies can make a big difference when you need protection.

The legal definition of a force majeure event generally refers to:

“A clause in a contract that frees both parties from liability or obligation when an extraordinary event or circumstance beyond their control prevents one or both parties from fulfilling their contractual duties.”

Simply put, a force majeure event occurs when an unexpected situation makes it too difficult or impossible to follow a contract

Common examples include:

• Natural disasters (hurricanes, floods, earthquakes)
• Fires or explosions
• Wars or acts of terrorism
• Government actions or mandates
• Pandemics or widespread illness

When one of these events happens, the law may excuse people from performing their contractual duties—or at least give them extra time. But it’s important to understand that not every unexpected event counts as force majeure. Insurance companies often look closely at claims and may try to deny coverage if the event doesn’t meet the legal requirements.

Insurance companies are in business to limit payouts, which is why knowing about force majeure matters. It can help you get the coverage you deserve.

For example:

• If a hurricane destroys your business property, your commercial property insurance might cover damages.
• If government-mandated closures prevent your business from operating, some policies might include force majeure provisions.

Insurance companies often interpret force majeure narrowly. They may argue that certain events are not covered, or that policy exclusions apply. This is why it’s important to know your rights and consider legal help if your claim involves a force majeure event.

Here are steps you can take to ensure you’re protected:

1. Review Your Contract or Policy Carefully
   Look for a force majeure clause or coverage details related to unexpected events. Note the language, requirements, and any exceptions. 
2. Document Everything
   Keep detailed records of the event, damages, communications with insurers, and any steps you took to mitigate losses. 
3. Notify Your Insurance Company Promptly
   Many policies require immediate notice of claims. Delays could jeopardize your rights. 
4. Consult an Experienced Attorney
   A lawyer can help determine if the event qualifies as a force majeure event under your contract or insurance policy and advise on the best strategy to pursue your claim.

• Misconception 1: Any bad event qualifies
  Not all disruptions are force majeure events. Ordinary delays, minor accidents, or economic downturns typically do not qualify.
• Misconception 2: Insurance companies must pay automatically
  Even if an event seems extraordinary, insurers may deny claims or require proof that the event prevented performance.
• Misconception 3: Legal jargon is too complicated
  While the language can seem intimidating, the basic principle is simple: a force majeure event is something truly extraordinary that stops you from fulfilling obligations.

If you’re facing challenges with an insurance claim, the team at Jack Bailey Law Corporation can help. With experienced attorneys who understand both the law and insurance industry practices, we guide clients through the complex process of asserting their rights and maximizing their claim.

Don’t leave your insurance claim to chance. Know your rights, document everything, and seek professional guidance when a force majeure event strikes.