Glossary Definition: A sanction limitation and exclusion clause is a regulatory insurance provision integrated into international contracts that prevents a carrier from providing coverage or paying claims if doing so violates global trade sanctions, laws, or embargoes. Including a sanction limitation and exclusion clause protects multinational insurance companies from severe legal penalties, rendering specific coverages void if a policyholder initiates cross-border insurance activities or multi-country freight routing inside blacklisted or restricted global trade territories.
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