Exclusion
In one sentence
Something a policy specifically won't cover. Worth knowing before you buy, not during a claim.
Exclusions carve specific scenarios out of coverage, for example some funds-transfer fraud unless verification controls are in place, acts of war, or risks tied to a disclosed weakness. They're part of the deal; the time to understand them is before binding.
Why it's on your cyber insurance application
Several of the questions on an application exist because of one: carriers ask about funds-transfer verification partly because the crime wording often covers payment fraud only where a procedure was in place. The controls you attest to and the exclusions you're offered are the same conversation from two directions.
What this looks like in practice
Ask your broker to point at the funds-transfer wording specifically, and to tell you what conditions attach to it. Several policies cover payment fraud only where a verification procedure was in place and followed. That's not a trick, it's a condition you can meet in an afternoon, but only if you know it's there before the loss rather than after.
The written evidence carriers accept
A “yes” on the application needs a document behind it. In the Readiness Pack, that document is:
Related terms
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