No insurance policy covers every conceivable event. An exclusion is a policy provision that eliminates coverage for specific perils, property, activities, or types of loss. Exclusions appear in their own section and also within definitions and conditions.

Common property exclusions include flood, earth movement, and wear and tear. Liability policies typically exclude intentional injury, contractual liability assumed beyond an insured contract, and pollution. The precise wording matters; courts interpret exclusions strictly against the insurer in many jurisdictions.

Endorsements can buy back certain excluded risks for an additional premium. Understanding exclusions is as important as understanding the insuring agreement. Many coverage disputes turn on whether an exclusion applies and whether any exception to the exclusion restores coverage.

• Policy language that eliminates specific coverage
• Applies to perils, property, or loss types
• Interpreted narrowly in many legal systems
• May be modified by buy-back endorsements