Elements of an insurance contract
Every commercial insurance policy will come with some basic parts. They include things like the declaration page, the conditions, the perils or types of damage that you are insured against, exclusions and extensions of coverage.
Declarations
The declarations page will show you who is insured by the commercial policy, what buildings are covered, the limits of insurance and the deductibles, and the dates of coverage. You will also see the insurance company’s full identity, and then the form numbers and endorsements.
Conditions and Insuring Agreements
Insuring Agreement
The insuring agreement is the portion of the insurance policy that describes what types losses or damage are covered. It is in the next sections that the exclusions and definitions are provided. For a claim to be considered, it must be covered under the insuring agreement and not stated as an exclusion.
General Conditions
This section lists the requirements that you must fulfill to maintain coverage.
This is one of the most important parts of the commercial insurance coverage reading. If you breach a condition, the policy may become void or the insurance company may refuse a claim even when it seems valid.
Exclusions
Certain types of property or causes of damage can be excluded from coverage. An exclusion is a provision in your policy that removes coverage. This section of the policy is where you will read the things that are excluded from the coverage and why they are excluded. Other types of property may be covered by the insurance policy, but only up to a Special Limit.
Endorsements
Listed seperately, an endorsement will either remove or add conditions to the policy itself. They are amendments or additions to an existing policy which changes the terms or scope of the original policy. Make sure to read it clearly and compare anything here to the rest of the policy.