In the context of insurance policies, what does the term “act of God” signify?

The term “act of God” refers to unforeseeable events that occur without the influence or intervention of humans, such as natural disasters like earthquakes, floods, hurricanes, and tornadoes. These events are typically beyond the control of individuals or organizations and are not due to human actions or negligence. This concept is important in insurance because it helps define the types of events that may be covered under a policy, and distinguishes those events from situations resulting from human actions or predictable events.

In contrast, events that can be easily predicted do not fall under this definition, as an "act of God" implies an element of surprise and lack of foreseeability. Similarly, deliberate actions causing damage are considered wrongful or negligent acts, which are treated differently under insurance law and coverage. Lastly, damages caused by negligence involve human error or failure to act responsibly, further separating them from the notion of an "act of God."