Insurance Law Lesson 101: Carve Out Exclusions

Many policies include more that one type of coverage. For example, Lesson 29 discussed that general liability policies typically include coverage for “bodily injury” and “property damage” caused by an “occurrence” separately from “personal and advertising injury.” Sometimes separate coverages are subject to different limits. (Lesson 6). Either way, insurance companies typically want to limit any given loss to a single policy limit.


This can be done with anti-stacking language (Lessons 82-84). When multiple types of coverage are provided in the same policy document, that document may also include language within a coverage section that precludes coverage for claims that fall within other coverage sections.


Here is an example.


The ISO (Lesson 18) commercial general liability coverage form includes “bodily injury” and “property damage” in Coverage A and “personal and advertising injury” in Coverage B. Coverage A has an exclusion for “bodily injury” that arises out of “personal and advertising injury.” This exclusion is to prevent a single injury from triggering both “bodily injury” and “personal and advertising injury” coverage.

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