https://www.insurerbrain.com/w/index.php?action=history&feed=atom&title=Definition%3AClauseDefinition:Clause - Revision history2026-04-29T20:15:14ZRevision history for this page on the wikiMediaWiki 1.43.8https://www.insurerbrain.com/w/index.php?title=Definition:Clause&diff=8729&oldid=prevPlumBot: Bot: Creating new article from JSON2026-03-11T04:32:07Z<p>Bot: Creating new article from JSON</p>
<p><b>New page</b></p><div>📜 '''Clause''' is a distinct provision or section within an [[Definition:Insurance policy | insurance policy]], [[Definition:Reinsurance treaty | reinsurance treaty]], or [[Definition:Binding authority agreement | binding authority agreement]] that defines a specific right, obligation, condition, or limitation governing the contract. In insurance, clauses do the granular work of shaping [[Definition:Coverage | coverage]]—spelling out what triggers a payment, how [[Definition:Claim | claims]] must be reported, when the insurer can deny liability, and how disputes between the parties will be resolved.<br />
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⚙️ A typical [[Definition:Commercial lines | commercial]] policy contains dozens of clauses, ranging from broad [[Definition:Insuring agreement | insuring agreements]] to narrow [[Definition:Exclusion | exclusions]] and [[Definition:Condition | conditions]]. Some clauses are standardized across the market—such as [[Definition:Insurance Services Office (ISO) | ISO]] standard forms or [[Definition:Lloyd's Market Association (LMA) | LMA]] model clauses used in [[Definition:London market | London market]] placements—while others are manuscript provisions drafted by [[Definition:Underwriter | underwriters]] or [[Definition:Insurance broker | brokers]] to address bespoke risks. In [[Definition:Reinsurance | reinsurance]], clauses like the [[Definition:Follow the fortunes | follow the fortunes]] clause, [[Definition:Arbitration clause | arbitration clause]], and [[Definition:Errors and omissions clause | errors and omissions clause]] carry significant financial weight, as they determine how losses flow between [[Definition:Cedent | cedent]] and [[Definition:Reinsurer | reinsurer]].<br />
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⚖️ The precise wording of a single clause can mean the difference between a covered loss and a coverage denial, which is why [[Definition:Policy wording | policy wording]] review is a core competency in both underwriting and [[Definition:Claims management | claims management]]. Courts interpret ambiguous clauses under the doctrine of [[Definition:Contra proferentem | contra proferentem]]—typically construing unclear language against the drafter, which in most cases is the insurer. As the insurance market evolves, new clause language emerges to address novel exposures: recent years have seen widespread development of [[Definition:Communicable disease exclusion | communicable disease exclusions]], [[Definition:Cyber exclusion | cyber exclusions]], and [[Definition:War exclusion | war exclusion]] updates, each reflecting shifting risk landscapes.<br />
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'''Related concepts:'''<br />
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* [[Definition:Exclusion]]<br />
* [[Definition:Condition]]<br />
* [[Definition:Endorsement]]<br />
* [[Definition:Insuring agreement]]<br />
* [[Definition:Policy wording]]<br />
* [[Definition:Contra proferentem]]<br />
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