A business insurance policy has five parts: the declarations page (your named insured, limits, deductibles, premium, and forms), the insuring agreement (what is covered), the exclusions (what is not), the conditions (your duties, like prompt notice), and the endorsements (changes that add or remove coverage). Read the declarations first to confirm your limits, then the exclusions and endorsements — that is where most coverage surprises hide.
You do not need to be an underwriter to understand your own policy — you need to know where the five parts are and what each one does. This guide walks them in order so you can confirm your limits, spot your exclusions, and read your endorsements. It is general education; your actual policy language controls, so confirm specifics with your carrier or agent.
The declarations (dec) page
The declarations page is the one-page summary at the front. It shows the details specific to you:
- Named insured — the exact legal entity covered (make sure it matches your business).
- Policy period — the start and end dates.
- Limits — your per-occurrence and aggregate amounts. See how much do I need?
- Deductibles — what you pay before coverage applies.
- Premium — the cost for the term.
- Forms and endorsements list — the form numbers that make up your policy (for example CG 00 01).
The five parts of a policy
- Declarations — your specific details (above).
- Insuring agreement — the carrier's promise of what it covers. For general liability this is the CG 00 01 form; for business auto, the CA 00 01 form.
- Exclusions — what the policy does not cover. This is the most important section to read; pollution, professional services, and certain water damage are commonly excluded.
- Conditions — your duties (prompt notice of a claim, cooperation, mitigation) and how disputes are handled.
- Endorsements — changes bolted onto the base policy that add or remove coverage, such as an additional insured endorsement.
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What to check on your own policy
- Is the named insured correct? — a wrong entity name can jeopardize a claim.
- Are your limits what your contracts require? — compare the dec page to your leases and client agreements.
- What is excluded? — if a key exposure is excluded, you may need an endorsement or a separate policy.
- Are the right endorsements present? — additional insured, primary and noncontributory, waiver of subrogation if your contracts require them. See COI clauses explained.
- Is it occurrence or claims-made? — for professional or management liability, check the form and retroactive date. See occurrence vs claims-made.
How to use your policy
- Read the declarations page and confirm the named insured, limits, and deductibles.
- Skim the exclusions — note anything that surprises you.
- Check the endorsements list against what your contracts require.
- Ask your agent about anything unclear before you need to file a claim.
Frequently Asked Questions
What is the declarations page?
It is the one-page summary at the front of your policy showing the named insured, policy period, limits, deductibles, premium, and the list of forms and endorsements that make up your policy.
What are the parts of an insurance policy?
Five: the declarations (your specifics), the insuring agreement (what is covered), the exclusions (what is not), the conditions (your duties), and the endorsements (changes that add or remove coverage).
Where do I find what my policy does not cover?
In the exclusions section. It is the most important part to read — common exclusions include pollution, professional services, and certain water damage. If a key exposure is excluded, you may need an endorsement or a separate policy.
What is an endorsement?
An endorsement is a change bolted onto the base policy that adds or removes coverage — for example, an additional-insured endorsement that extends your coverage to a landlord or general contractor.
How do I know my limits are high enough?
Compare the limits on your declarations page to what your leases and client contracts require, and to your risk and assets. An umbrella can raise limits cheaply if a contract requires more than your primary policy carries.
What form number is general liability?
The standard ISO commercial general liability coverage form is CG 00 01; the standard business auto form is CA 00 01. Your declarations page lists the forms that make up your policy.
Quick glossary
- Declarations (dec) page
- The summary page showing the named insured, limits, deductibles, premium, and forms.
- Insuring agreement
- The section describing what the policy covers.
- Exclusion
- A provision stating what the policy does not cover.
- Endorsement
- A change added to the base policy that adds or removes coverage.