Failure to Insure Exclusion Analysis | ALIGNED Insurance

Failure to Insure Exclusion def:

The failure to insure exclusion is found primarily in directors and officers (D&O) liability policies and, to a lesser extent, in public officials liability policies. The failure to insure exclusion precludes coverage for claims made against insureds when claimants suffer losses resulting from failure to purchase insurance coverage, provided such coverage was available. Many have criticized the rationale for the failure to insure exclusion because intentional self-insurance—even if an organization suffers a significant loss—is often a sound business decision, especially in the long term. In recent years, however, underwriters have become more amenable to removing the failure to insure exclusion, provided the insureds submit a summary of the organization’s insurance program.

To learn more about the failure to insure and other exclusions in your Directors and Officers (D&O) or other insurance policies speak to an ALIGNED Insurance Advocate or connect with us at

About ALIGNED Insurance

ALIGNED specializes in delivering Property & Casualty insurance and risk management solutions exclusively to Canadian businesses. Through our 18 points of differentiation and expertise, we deliver unmatched value to our growing portfolio of clients from all industries that range from small to large organizations.

We offer all of the following Property & Casualty products:

Management Liability:

Board Insurance / Directors and Officers (D&O) Insurance
Employment Practices Liability (EPL) Insurance
Fiduciary Liability Insurance

Other Property & Casualty products ALIGNED offers:

Property Insurance- Including Business Interruption & Extra Expense
Machinery Breakdown/Boiler & Machinery Insurance
Course of Construction(COC)
Wrap-up Liability Insurance
Commercial General Liability / CGL Insurance
Pollution Liability Insurance
Commercial Automobile & Fleet Insurance
Umbrella Liability Insurance
Cyber, Hacking & Privacy Liability Insurance
Crime/Fidelity/Employee Theft Insurance
Professional Liability/Errors & Omissions (E&O) Insurance
Kidnap & Ransom Insurance
Representations & Warranty Insurance
Trade Credit

To learn more about our Property & Casualty insurance products visit us at

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