What is a fortuitous event?

A fortuitous event is defined as an unexpected, accidental, or uncertain occurrence. In the context of insurance, this concept is crucial because coverage is typically extended to events that are beyond the control of the insured party. These could include natural disasters, accidents, or other incidents that result in unexpected loss or damage.

The essence of a fortuitous event lies in its unpredictability. Insurers assess risk based on the likelihood of such events occurring, and coverage is designed to protect against losses arising from these unpredictable incidents. Insurers do not cover planned or intended events, as they are foreseeable and within the control of the policyholder. Similarly, predictable or recurring scenarios are not considered fortuitous because they can be anticipated and accounted for in risk management strategies. A generic risk assessment is too vague and does not specifically pertain to the nature of fortuitous events, which emphasize the element of uncertainty and surprise in loss scenarios.