The heart of any insurance contract is what it will pay for. Coverage is the protection afforded by an insurance policy—the set of risks, perils, and damages for which the insurer agrees to respond, subject to the policy’s terms, limits, and exclusions.

Coverage can be broad or narrow. An all-risk property form covers any cause of loss not specifically excluded; a named-peril form covers only the listed causes. Liability coverage is defined by the nature of the legal obligation and the activities included. Endorsements can expand or restrict the basic grant.

Understanding coverage requires reading the insuring agreement, definitions, exclusions, and conditions together. Marketing materials and summaries help, but the policy language governs. Disputes over coverage interpretation fill court dockets and drive continuous refinement of policy wording by insurers and rating organizations.

• Protection provided by an insurance policy
• Defined by insuring agreements and exclusions
• May be broadened or narrowed by endorsement
• Determined by the full policy contract