Insuring Clause

The insuring clause is a key section in a policy that outlines the conditions under which the insurer agrees to provide coverage to the insured. This clause specifically defines the risks that are covered, the obligations, and the conditions under which claims will be paid.

Characteristics

• Specific Coverage: It details the types of losses or damages covered by the policy, such as fire, theft, accidents, water damage, etc.
• Insurer Obligations: It outlines what the insurer is required to do in the event of a covered occurrence, such as compensating the insured for their losses.
• Conditions and Exclusions: It includes the conditions under which coverage is valid and may mention specific exclusions, meaning situations or events not covered by the policy.
• Coverage Limitations: It may set limits on the amount of compensation the insurer will pay in the event of a claim.