Exclusions are policy provisions that eliminate or restrict coverage for specific claims or losses. Their purpose is to clarify the grant of coverage.

Theoretically, a policy could be drafted without any exclusions, perfectly expressing the insurer's intent of coverage so that it could be interpreted in no other way. Such a policy has yet to be developed and probably never will be. In fact, all D&O policies contain many often convoluted and ambiguous exclusions as well as exceptions to exclusions, and exceptions to exceptions to exclusions.
This section  contains discussions of some of the most common exclusions found in the "Exclusions" section of the basic D&O policy form or which are frequently added by endorsement.

Exclusionary language apart from that contained under the "Exclusions" heading can be found elsewhere in many D&O policies. For example, policy definitions frequently exclude some types of claims. Consider the following.