Whether it’s an Apple software update, or a TV streaming package, it’s safe to say, people don’t tend to read the terms and conditions before hitting the ‘agree’ button or signing a contract.

Sometimes, there’s no major fallout from this. But if you’re a fan of Black Mirror, you’ll recently have learned that not reading the T&Cs before you accept can cause issues, as you can make yourself responsible for things without really knowing what you’re doing.

With that in mind, we wanted to take a closer look at why people might skip the terms and conditions, and why you should always read them in your insurance contract.

Why don’t people read the T&Cs?

There are several reasons people may choose not to read terms and conditions before agreeing to them:

Lengthy and complex language

Terms and conditions are often written in dense and complex legal language, which means they can be difficult to read and understand.

Not enough time

In today’s fast-paced world, individuals may feel pressured to quickly proceed with the transaction without taking the time to read them.

They think it’s irrelevant

Some may perceive T&Cs as unimportant to their immediate needs. Perhaps they think the terms won’t significantly impact their experience, or assume they’re standard and unchanging across different providers.

They aren’t aware of what could happen

People might simply be unaware of the potential consequences of not reading them. They may not realise the rights they could be giving up, or the potential risks they can be exposed to by agreeing to certain terms without fully understanding them.

Tricky legal terms

Understanding legal language and implications can be challenging for individuals who aren’t familiar with it, which can deter them from reading and comprehending T&Cs.

Where does insurance come in?

Your Policy Schedule should give you the headline details of your insurance contract, but the long and bulky Policy Wording is where the T&Cs are – and they’re a key part of your contract. This is where you’ll find the fine print, including information about:

Obligations

What to do if you suffer a loss, how quickly you need to notify a claim, and how to prevent further loss will all be listed here. There may also be other less obvious duties, such as automatic obligation to allow insurers to subrogate on your behalf (i.e. take action to recoup claims costs from the party at fault).

Coverage scope

See what’s actually covered, and to what extent. For example, if they cover you for IP infringement, how far does that go? Will it cover a claim for infringing a patent or trademark, or just copyright?

The amount insurers will pay

They may pay the defence costs when you’re the subject of litigation, but will they also pay for any damages or costs awarded against you? Will they pay for certain fines or penalties?

Exclusions

What have insurers excluded from the cover? For example, if it’s Professional Indemnity, is there an exclusion for injury or damage arising from your services?

How RiskBox can help

We get it, terms and conditions aren’t all that interesting. But not reading them can have drawbacks, as you could unknowingly agree to unfavourable conditions, such as privacy policies or limitations on your rights. You may even end up like Joan (if you know, you know).

So if you need support understanding the T&Cs in your contracts, speak to the team at RiskBox. You can reach us on 0161 533 0411, or fill in our contact form and we’ll get back to you.

Photo by charlesdeluvio on Unsplash