Insurance carve-out

An **Insurance carve-out** refers to a specific portion of insurance coverage that is excluded or separated from a broader insurance policy. This term is often used in contexts where certain risks, liabilities, or types of coverage are “carved out” and handled separately, either through a different policy, special endorsement, or by the insured retaining that risk. Insurance carve-outs allow businesses and individuals to customize their overall coverage by excluding specific risks that might be better managed through other means or specialized insurance products.