Wordings Library
Market exclusions
Clause explained
Communicable Disease Exclusions
Excludes or limits loss connected with communicable disease, fear or threat of disease, or related authority action.
Meaning
Excludes or limits loss connected with communicable disease, fear or threat of disease, or related authority action.
Why insurers use it
To define pandemic exposure after disputes over broad property and business-interruption wording.
Effect on coverage
Causation language and any buy-back determine whether physical damage, closure, cleaning, or BI remains covered.
Illustrative example
Authorities close a hotel after a local disease outbreak without physical damage.
Claim consequence
A broad exclusion may bar BI and mitigation costs even if a non-damage extension might otherwise appear relevant.
What the insured should negotiate or check
Check disease and causation definitions, authority-action wording, sublimits, waiting periods, territorial radius, and buy-backs.