Exclusion
What Are Exclusions in Insurance?
An exclusion on an insurance policy is a type of risk, accident, or event that is not covered. Insurance exclusions tell you what your policy will not pay for (so there are no surprises later).
Some insurance policies might only list what is covered, which means anything that’s not on the list is excluded.
Why Do Insurance Policies Have Exclusions?
Insurance exclusions are a standard part of any policy, from auto insurance to business liability coverage. They exist to keep insurance fair, understandable, and affordable.
Insurance policies include exclusions to:
- Manage risk: Exclusions help providers limit coverage for high-risk or repetitive losses
- Provide clarity: Clearly defined exclusions help you understand what your policy does and does not cover, making it less confusing when filing a claim
- Reduce costs: By excluding extreme or avoidable risks, insurers can keep premiums more affordable for policyholders
Examples of Common Insurance Exclusions
Exclusions vary by policy and provider, but many insurance policies commonly exclude catastrophic, intentional, or preventable events.
Common catastrophic exclusions include:
- Natural disasters (floods, earthquakes, and landslides)
- Government actions
- War and terrorism
- Nuclear events
- Intentional acts
Other commonly excluded risks include:
- Illegal acts
- Wear and tear
- Pollution
- Faulty workmanship
Where Can I Find My Policy’s Exclusions?
You can usually find your insurance policy’s exclusions in your policy documents under a section labeled “Exclusions,” often near the end of the policy.
Exclusions may also appear in:
- Coverage descriptions: Limits within covered items, such as timeframes or conditions
- Definitions: Terms that narrow coverage by excluding certain situations
- Conditions: Rules and requirements that limit when coverage applies
- Endorsements: Add-ons that modify, add, or remove coverage
Insurance Canopy gives you 24/7 access to your policy documents when you log in to your online dashboard. Need help finding where the exclusions are on your policy? Please contact us and we’ll be happy to help review your coverage!
Are Exclusions Listed on My Certificate of Insurance (COI)?
No. A Certificate of Insurance (COI) does not list exclusions. Instead, it provides a summary of your policy, showing that you have coverage — not the full details of what is or is not covered.
Can Exclusions Be Removed With Endorsements?
Some exclusions can be removed with an endorsement, while others cannot. If an exclusion exists because the risk is meant to be covered by a different type of insurance, a separate policy is usually required.
Endorsements commonly used to reduce or remove exclusions include:
- Contract requirements: Additional Insured, Primary and Noncontributory, or Waiver of Subrogation endorsements
- Venue or tenant needs: Increased Damage to Premises Rented to You coverage
- Non-owned auto exposure: Hired & Non-Owned Auto (HNOA) liability
- Alcohol at events: Host Liquor or Limited Liquor Liability, depending on the policy
- Products-Completed Operations: Extended coverage for certain trades or high-risk work
- Niche risks: Limited options for risks like assault & battery or pollution
Exclusions that usually require a separate policy include:
- Professional services or advice: Professional Liability (E&O)
- Employee injuries: Workers’ Compensation
- Cyber or data breaches: Cyber Liability
- Owned business vehicles: Commercial Auto
- Pollution exposures: Pollution or Environmental Liability
Insurance Exclusions vs Endorsements: What’s the Difference?
Exclusions in insurance policies remove coverage for specific risks, while endorsements change the original policy by adding, expanding, or limiting coverage, sometimes restoring coverage that was excluded.
Swipe →
| Exclusions | Endorsements | |
|---|---|---|
|
What it is |
What is not covered on an insurance policy |
Changes made to an insurance policy to modify coverage |
|
Purpose |
Keeps your policy focused and affordable by removing certain risks |
Tailors coverage to your business or a contract’s requirements |
|
How it affects coverage |
Removes or narrows protection |
Adds, broadens, or limits protection |
|
Who initiates it |
Built into the base policy by the insurance provider |
Requested by you, your agent, or required by a contract |
|
Cost impact |
Helps keep base premiums lower |
May increase premiums |
|
Contract impact |
Can create coverage gaps between your policy and contract requirements |
Often helps you comply with client, venue, or landlord requirements |
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