Archive for June, 2016

A Tale of Two Exclusions

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When it comes to insurance policy language and exclusions, most would assume less is better. That is, a briefly worded exclusion probably excludes LESS than a more lengthy one. When it comes to Marine Insurance this isn’t necessarily the case. Consider the two exclusions in the box below. At first glance, one might assume the shorter exclusion on the right is likely to be less restrictive.

Part D: Property Damage Coverage2. EXCLUSIONS: We do not provide property damage coverage against or resulting from:

a.wear and tear, deterioration, mechanical or electrical failure, improper repair, corrosion, weathering, insects, mold or mildew, animals, vermin, or marine life damage. However, this does not exclude a consequential loss to your Boat resulting from the burning, collision, demasting, sinking, or stranding of your Boat due to the losses otherwise excluded in this Part D: Property Damage Coverage, Section 2a;

 

Part D: Property Damage Coverage2. EXCLUSIONS: We do not provide property damage coverage against or resulting from:

a.wear and tear, deterioration, mechanical or electrical failure, improper repair, corrosion, weathering, insects, mold or mildew, animals, vermin, or marine life damage.

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