What part of the insurance contract specifies the risks that are covered?

The insuring agreement is the part of the insurance contract that outlines the specific risks that are covered by the policy. This section provides the core details of what the insurer will pay for in the event of a claim, including the types of losses or damages that are included. It typically highlights the coverage provided, conditions, and circumstances under which the policy will respond.

In contrast, the exclusion clause specifies what is not covered by the policy, providing clarity on limitations and helping to avoid misunderstandings regarding coverage. A warranty refers to a guarantee made by the insured about certain conditions that must be met for the policy to remain valid. The policy limit statement indicates the maximum amount the insurer will pay in the event of a claim, rather than detailing the risks that are covered. Thus, while each of these components plays a role in defining the terms of the insurance agreement, the insuring agreement is the key section for understanding the covered risks.