Policy Exculsions

Policy Exclusions

Liability insurance is not without limitations. Most policies will cover all fees and expenses incurred while defending a lawsuit. Unfortunately every policy contains some exclusion, the most notable being breach of contract. Many insurers will not pay for claims arising out of a breach of contract, such as the violation of a noncompetition clause. Other notable exclusions include criminal or malicious acts, forgery and misrepresentation (Association of Personal Trainers 2002). For example, if a lawsuit against you rests on the fact that you misrepresented yourself as an exercise specialist when in fact you are an exercise leader, your insurance policy will not protect you. Insurance policies are primarily limited to negligence cases, which are based on carelessness, not deliberate intention.