Updated: 09 June 2023

What Does Disclaimer Mean?

A disclaimer is a statement that denies, repudiates, or renounces a claim or responsibility. It may contain a warning or specify the rights and obligations of the parties to a contract.

In terms of insurance, a disclaimer is a legal statement that provides for limits on the responsibilities of an insurance agent or insurance company giving information about the policy. As a result, legal liability is reduced and sometimes even avoided.

Insuranceopedia Explains Disclaimer

Disclaimers are found either at the start or at the end of the contract. Generally, it gives a clarifying statement on the responsibilities and liabilities of the issuer of the same. In an insurance contract, a disclaimer often contains the limitation on two things: the rights of the policyholder and the responsibilities of the insurance agent or the insurer.

Other information a disclaimer may include are a change in terms and conditions without prior notice, that the quote is only a quote and not an offer, and that the price of the policy or the premium is not yet final.

Any person signing a contract with disclaimers should carefully read and understand it before signing. Otherwise, the insurer can use it to discharge itself from liability.

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