Definition

A safeguard that limits the amount you pay on large claims. It kicks in when your expenses exceed a set limit to protect your finances.

What to consider

  • Carefully review what is excluded from coverage.
  • Understand how exclusions may affect your claims.
  • Ask for clarification on ambiguous exclusions.

Real world scenarios

  • A patient’s policy includes an exclusion clause that does not cover pre-existing conditions.
  • An insurance contract specifies an exclusion clause for injuries from extreme sports.
  • A travel insurance policy features an exclusion clause for losses due to acts of war.

Related terms

Insurance & Financial Protection