Advertisement

Caveat Emptor

What Does Caveat Emptor Mean?

Caveat emptor is a Latin phrase that means "let the buyer beware." This principle is often used to remove the liability for the quality of a good or service from the buyer or seller.

Advertisement

Insuranceopedia Explains Caveat Emptor

Caveat emptor can come into play when the seller includes a contract provision such as "buy at your own risk" or "use at your own risk." With such provisions, the seller cannot be held liable for the quality of the product and the buyer cannot sue for quality-related losses. Although the buyer cannot sue, they can still file an insurance claim if it is an insured loss.

Advertisement

Share this Term

  • Facebook
  • LinkedIn
  • Twitter

Related Reading

Tags

InsuranceLiability InsuranceThe Insurance BusinessProduct Liability

Trending Articles

Go back to top