What is typically the purpose of a waiver in insurance?

A waiver in the context of insurance is primarily a legal document that serves to release one party from liability. This means that when a waiver is signed, one party agrees to relinquish their right to hold another party accountable for certain damages or losses. It often comes into play in scenarios such as releases from liability in athletic events, where participants agree not to sue the organizers for injuries sustained during the activity.

This understanding of waivers aligns with common practices in insurance, where they are utilized to establish clear boundaries regarding liability and responsibility. For instance, a homeowner might sign a waiver when allowing workers onto their property, thereby protecting those workers from lawsuits related to accidents or injuries that may occur during the course of their work.

Other choices, while related to insurance, do not accurately capture the primary function of a waiver. The adjustment of coverage limits pertains to changes made to policy terms, claiming benefits relates to the process of filing for insurance payouts, and transferring ownership involves the actual change of rights to an asset rather than liability issues addressed by a waiver.