The relationship between insurer and insured is defined in writing. A policy is the formal contract that sets out the coverages, limits, conditions, exclusions, and duties of the parties. It is the document that governs what will be paid and under what circumstances.

A typical policy includes declarations identifying the insured and the risk, insuring agreements, definitions, exclusions, conditions, and any endorsements. The entire contract must be read together; marketing brochures do not override the policy language. Delivery of the policy to the insured is an important legal step.

Policy forms may be standardized by rating organizations or customized for large accounts. Ambiguities are often construed against the insurer in coverage disputes. Keeping the policy accessible and reviewing it at each renewal helps the insured understand the protection actually purchased.

• Written contract of insurance
• Defines coverages, limits, and exclusions
• Consists of declarations, forms, and endorsements
• Controls over marketing descriptions