Insurance policies use exclusions, conditions and limitations to define the scope of cover.

Exclusion #

An exclusion removes or restricts cover for a particular type of:

• Event
• Activity
• Loss
• Property
• Person
• Circumstance

An exclusion in a standard wording may sometimes be amended by an endorsement.

Condition #

A condition sets out a requirement applying to the insured or the operation of the policy.

Examples can include:

• Maintaining particular security
• Advising the insurer of specified changes
• Obtaining consent before certain claim costs are incurred
• Complying with particular risk-management requirements

The effect of failing to comply with a condition depends on the wording and circumstances.

Limitation #

A limitation restricts the amount, duration or scope of cover.

Examples can include:

• A monetary sub-limit
• Geographic restriction
• Time restriction
• Restricted activity
• Limit applying to a particular benefit

Exclusions, conditions and limitations can appear in the:

• Policy wording
• Policy schedule
• Endorsements

These documents should be read together.

Contact our team if you need help understanding how a particular provision affects your insurance.