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The contract that I have the most familiarity with are insurance contracts, namely general liability policies. They have all kinds of exclusions in them that appear "weird" to the average person. In fact, many see them as 'loopholes' to prevent the insurance company from having to pay out claims.

In practice though, a lot of claims are paid out and the exclusions in the policy are built in for a good reason. They fall into two broad categories 1) Coverage that is better underwritten elsewhere and 2) Risks that are very difficult to assess (like electronic data).

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