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CANADIAN INSURANCE TERM

Exclusion

A policy provision that removes or restricts coverage for specified causes of loss, property, activities, circumstances or persons.

Plain-language definition. A real policy, endorsement and provincial law can use more specific wording than a glossary summary.
UpdatedAugust 31, 2026
ByCanada Rate Lab Editorial Team
SourcesIBC + primary sources
MethodologySource-led research
TERM SNAPSHOT
TermExclusion
ContextCanadian insurance
Source typeIndustry glossary
Policy wordingControls claim

What does Exclusion mean?

A policy provision that removes or restricts coverage for specified causes of loss, property, activities, circumstances or persons.

A policy can list broad coverages and still exclude particular situations. Exclusions should be read together with definitions, conditions and endorsements.

EXAMPLE

Exclusion in practice

A property policy may cover many sudden losses while excluding certain forms of wear, maintenance or other specified causes.

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Endorsement

A document that changes, adds to or removes part of the standard terms of an insurance policy.

Peril

A cause of loss or damage, such as fire, theft, wind or another event described in the policy.

Coverage

The protection provided by an insurance policy for specified property, people, liabilities, events or expenses, subject to limits, exclusions, deductibles and conditions.

Primary reference

Insurance Bureau of Canada — Insurance GlossaryCanada Rate Lab — Sources & Data