If your policy is claims made, ask your insurance advisor to explain the policy. Definitions Insurance policies contain many common words that have special meaning within the context of insurance. The policy identifies these words usually by bold print or quotation marks. Since definitions may restrict or limit coverage, it is essential that policyholders read definitions carefully and seek clarification whenever a definition it unclear. Every insurance policy has exclusions or policy provisions that eliminate coverage for specified exposures.
Exclusions serve as a way to clarify the coverages granted by the policy.
However, an exclusionary provision can be anywhere in the policy. Furthermore, an exclusion may also contain a broadening provision. In the commercial general liability policy, the Aircraft, Auto, or Watercraft Exclusions eliminate coverage for the ownership, maintenance, use or entrustment of these vehicles or vessels. However, the exclusion has five exceptions where the policy covers watercraft such as while ashore on your premises and for certain nonowned watercraft. Read the policy carefully and note the provisions that apply to your operations.