Understanding Legal Terms: Act of God

The term “Act of God” can be defined as an event which is caused solely by the effect of nature or natural causes and without any interference by humans whatsoever, deeming them unpreventable or impossible to guard against.

Legally in Insurance contracts “Acts of God” are often excluded from the policy cover of insurable occurrences as a means to waive their obligations. Examples of this are damage caused by storm damage, natural fire or lightening damage, hurricanes, floods, tornado or earthquakes. Because forces of nature are uncontrollable therefore no entity can be held accountable for the likelihood of the event and is seen as an inevitable accident.

These types of events tends to be the most violent and devastating to people, property and the environment with a very small limit to how well human interaction can prevent and control the impending disaster, beforehand or during the episode. Usually Government funding or charity intervention compensates for losses which insurance pay-outs can not bridge.