Insurance Defense and Coverage
Policy Anatomy
An insurance policy is a written contract obligating the insurer to pay covered losses in exchange for premium. It is assembled from several components: the declarations page identifying the parties and limits, the insuring agreement stating the coverage grant, definitions, exclusions, conditions, and any endorsements that modify the standard form.
Courts read the policy as a whole rather than reading any provision in isolation. The insured generally bears the burden of showing a loss falls within the insuring agreement, and the insurer bears the burden of proving an exclusion applies.
Alternative Names:
Liability Policy, Policy of Insurance
Why it Matters?
Every coverage dispute in complex litigation starts with the policy text, and the outcome usually turns on which component controls. Defense teams that treat the policy as a single document rather than a layered contract miss endorsements that narrow or expand the grant, and miss conditions such as notice and cooperation that can defeat coverage independent of the merits.
Frequently Confused with
Related terms
Frequently asked questions
What are the main parts of an insurance policy?
Who has the burden of proof in a coverage dispute?
