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

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Mia's avatar
Hey there! I’m Mia. Have questions about Stop-Loss Coverage?
Mia's avatar
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