War Exclusion Clause

What is ‘War Exclusion Clause’

A clause in an insurance policy that specifically excludes coverage for acts of war such as invasion, insurrection, revolution, military coup and terrorism. A war exclusion clause in an insurance contract refers to protection for an insurer who will not be obligated to pay for losses caused by war-related events. Insurance companies commonly exclude coverage perils that they cannot afford to pay claims on.

Explaining ‘War Exclusion Clause’

Because most insurance companies would be unable to remain solvent, let alone profitable, if an act of war suddenly presented them with thousands or millions of expensive claims, auto, homeowners, renters, commercial property and life insurance policies often have war exclusion clauses. However, entities that are faced with a significant risk of war, such as companies located in politically unstable countries, may be able to purchase a separate war risk insurance policy.

Further Reading

  • 'Child Soldiers' as 'Non-Combatants': the inapplicability of the refugee convention exclusion clause – www.tandfonline.com [PDF]
  • The politics of productivity: foundations of American international economic policy after World War II – www.jstor.org [PDF]
  • Class war-on-terror: counterterrorism, accumulation, crisis – www.tandfonline.com [PDF]
  • Why White, not Keynes? Inventing the post-war international monetary system – link.springer.com [PDF]
  • Revisionists and Fundamentalists: the Labour Party and Economic Policy during the Second World War – www.cambridge.org [PDF]