What are the parts of a liability policy? (Construction, structure of a policy)

The policy wording is made up of the following parts:

  • Preamble – this makes the policy conditional upon the payment of the premium, the truthfulness and completeness of disclosure by the Insured
  • Attestation clause –the underwriter’s signature accepting the risk
  • Operative clause – this clause states what the underwriter’s will pay for
    • This clause is different from the other clauses in that the onus is on the Insured to prove that his claim falls within the Operative Clause. By contrast, the onus is on the underwriter to prove that an exclusion applies.
  • Definitions – the meaning of frequently used terms is defined to avoid repetition
  • Exclusions – states what the policy does not insure
  • Conditions – states what the Insured needs to do in order to enjoy cover
Introduction to Liability