What are three common insurance exclusions?

• A. Fire, Theft, Wind
• B. Pollution, Water damage, Employees of others
• C. Pollution, Water damage, Disposal
• D. Flood, Earthquake, Mold

Answer: (B)

Insurance policy exclusions are losses that a standard policy does not cover, so recognizing them helps you identify gaps in coverage on a building project. Three exclusions you’ll commonly see are pollution, water damage, and injuries to employees of others.

Pollution exclusion is standard because pollution events can involve long-term contamination and expensive cleanup that insurers avoid covering under ordinary policies. Water damage is another frequent exclusion because gradual leaks, seepage, and other moisture issues can lead to extensive, ongoing damage that many policies restrict or deny unless there’s a sudden, accidental event or a specific water-related peril is involved. Finally, the exclusion for employees of others reflects how workers’ compensation, not general liability, is intended to cover injuries to workers; injuries to the insured’s subcontractors’ or others’ employees are typically not covered under the general liability portion of a policy.

The other options mix in perils that are often covered or only selectively excluded, or include items that aren’t universally treated as standard exclusions. That’s why the trio of pollution, water damage, and injuries to employees of others is the best fit for common exclusions.