exali Glossary
Your encyclopedia of technical terms used in the insurance industry
The insurance industry is full of technical terms—from insurance policies and obligations to recourse claims. To help you keep track of everything, the exali glossary explains the main insurance terms in a simple, understandable, and practical way.
In the exali glossary, you will find not only definitions, but also practical examples, legal information, and references to the appropriate insurance coverage. This way, you always know where the risks lie—and how to protect yourself against them.
Search result
Experimentation and Testing Clause
Some insurers have included exclusions in the insurance conditions of their general and personal insurance, such as the experimentation and testing clause, from insurance concepts in other industries. These pose a significant risk for freelancers and service providers. Two examples of such clauses:
“The insurance does not cover ... claims that result from the fact that products and services, their use or effect with regard to the specific purpose were not sufficiently tested - e.g. not in accordance with the state of the art or in the case of software without customary and appropriate program tests or in any other way.”
OR
“.. damage that could have been avoided through additional effort is excluded.”
The presence of a malfunction, such as a faulty data backup, which can lead to considerable damage, ultimately always provides the insurer with prima facie evidence free of charge that insufficient tests have been carried out. In such a case, an insurer with such a clause would have a good opportunity to deny the IT service provider insurance coverage. Such clauses are problematic to evaluate.
Term: Experimentation and Testing Clause
Related Search Terms starting with E:
If you can’t find a term, please don’t hesitate to contact us. We will answer your question and add it to the glossary.
You can find more tips and information about your business, insurance and real claims in our News & Stories.