Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Contract of insurance definition

What does Contract of insurance mean? A contract of insurance is an agreement under which an insurer, in return for a premium, assumes a specified risk and promises to pay money or provide a defined benefit if an uncertain, adverse event occurs. In practice, this includes indemnity policies (covering quantified loss) and contingency policies (such as life or personal accident cover). For UK regulatory purposes, the Financial Services and Markets Act 2000 and the Regulated Activities Order 2001 classify contracts of insurance as either long‑term (for example, life assurance, annuities, permanent health) or general (non‑life). This classification determines whether effecting and carrying out insurance is a...

Exclusion Clauses under UK Insurance Law: Defining Cover, Common Exclusions across Policy Types, Illegality, Burden of Proof, Causation and Interpretation

Published by a LexisNexis Insurance & Reinsurance expert

Practice notes

What are exclusion clauses

Unlike certain exclusion or exemption terms used in general contracts, an exclusion clause in an insurance policy is seldom intended to remove, curb, or cap a party’s legal liability. Instead, such provisions delineate the edges of the insured risk by specifying what is not insured under the policy. Whereas insuring provisions are often drafted broadly for ease, exclusions operate to pare back the breadth of cover. Exclusion clauses must be differentiated from other policy terms, including Conditions precedent and warranties. The role of an exclusion is to identify, from the outset, those particular perils that insurers will not cover in any circumstances under the policy. Conditions precedent and warranties, by contrast, only influence the extent of insurance when the insured breaches them. Under the Insurance Act 2015, a breach of a Condition precedent or warranty can result in the insurer’s liability being discharged, or cover being suspended under the policy.

Common exclusions

Some exclusions regularly appear across various policies, for example:

war
terrorism...

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Susie Wakefield

Shoosmiths

Susie Wakefield is a partner in Commercial Litigation specialising in insurance and reinsurance litigation and arbitration. Susie also has a broad range of experience advising clients in the energy sector and in commodities trading. Susie qualified and practised for many years in New York and Bermuda as well as in London. Susie has advised Bermuda, US, and London market insurers and reinsurers in litigation in federal and state courts in New York, the Supreme Court of Bermuda, and the High Court and in arbitration. She has represented clients in complex, multimillion-dollar disputes, including cases with substantive international and multijurisdictional aspects. Recent experience includes:- advising on a range of (re)insurance matters, including claims and coverage disputes and issues arising in connection with Bermuda Form policies and reinsurance arrangements involving captives and segregated account companies. Advising insurers/reinsurers on complex policy wording reviews; significant property and casualty losses; claims...

Web page updated on 21/05/2026

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