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classification limitation

A classification limitation is a nonstandard exclusion sometimes made part of general liability policies for commercial insureds with a wide range of business activities.

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Additional Information

The exclusion eliminates coverage with respect to business operations of the insured for which no classification code is listed in the policy declarations. This allows insurers to provide coverage only for the exposures that have been specifically underwritten.

Related Terms

A class is a group of insureds who have similar exposures and experience and are grouped together...