It was your friend who was electrocuted in campground swimming pool. Your friend's estate sues campground and wins.
Under the form agreement you signed, the campground expects you to lay their attorney fees and the "lottery" payoff. You don't pay the campground right away, so they send to collection agency. Or they decide to sue you. You cross your fingers (having read your own insurance policies and understood them) and believe your insurance company will help you out and not say not covered--contractual dispute.
Lots of what ifs, and will probably never happen to anyone reading this. So why have these forms?