Wordings Library
Market exclusions
Clause explained
Sanctions Exclusions
Limits cover or payment where providing insurance would expose a party to applicable sanctions or prohibitions.
Meaning
Limits cover or payment where providing insurance would expose a party to applicable sanctions or prohibitions.
Why insurers use it
To keep insurers and other parties within binding legal and regulatory restrictions.
Effect on coverage
Can affect underwriting, attachment, claims payment, counterparties, currency, territories, vessels, and banks.
Illustrative example
A cargo claim involves a vessel owner newly placed on a sanctions list.
Claim consequence
Payment may be suspended, prohibited, licensed, or declined depending on the law and clause—not merely the loss itself.
What the insured should negotiate or check
Check applicable regimes, named parties, ownership/control, vessel and banks, licensing, territorial reach, and wording.