Question

4.1 Are parties to an insurance contract legally obliged to subrogate in all appropriate circumstances? Also, If a vehicle used for commercial purposes is left outside in the snow and its roof caves in as a result, will the Broad policy form cover this type of damage? Explain.

Answer 1

Are parties to an insurance contract legally obliged to subrogate in all appropriate circumstances?

Yes, the parties to an insurance contract legally obliged to subrogate in all appropriate circumstances. A subrogation right automatically arises soon after the insurer pays the damages caused by the third party, and allows the insurer to claim for the damages against the third party. For instance, when an insured driver's car met with an accident through the fault of some other driver. The insurance company reimburses the damages to the insured under the terms of the policy and then takes legal action against the driver at fault.

If a vehicle used for commercial purposes is left outside in the snow and its roof caves in, as a result, will the Broad policy form cover this type of damage? Explain

Broad form insurance coverage extends beyond the basics that include some rare events that may cause serious risk to the insured person. It requires a high amount of premium to be paid as to be applied to almost all forms of insurance, including investments, assets, and many more.

It covers damage from broken windows, falling objects, and water damage and many more. If the car is outside and its roof caves due to snow, the Broad policy form covers this type of damage.

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