Business Insurance Policies Interpretation


Summary

This practice note discusses how a business insurance policy is interpreted. It explains what interpretation means as that term may be misleading. The concepts that will be discussed are generally applicable to both business and individual (personal lines) insurance policies. Certain exclusions or other limitations to coverage that are discussed appear only or primarily in business policies. Whether appearing in business or personal policies, rules of interpretation are generally the same. Sometimes, rules of interpretation are called rules of construction as the terms are essentially synonymous.