Best Practices for Negotiating Manuscript Exclusions

This guide discusses best practices for negotiating manuscript endorsements in insurance policies, specifically focusing on exclusions. Manuscript endorsements are custom additions to policies that may lack uniformity and are often subject to disputes. The document outlines three key practices for policyholders to consider. First, it emphasizes the importance of the introductory language used in exclusions, noting that broader language can lead to wider application by courts. Second, it advises defining the excluded conduct as narrowly as possible to avoid unintentional coverage gaps. This includes using specific identifiers for any pre-existing litigation. Lastly, it suggests avoiding language that excludes 'any claim' related to the conduct, as this can lead to broader denial of coverage. Instead, policyholders should clarify that exclusions apply only to specific losses attributable to the excluded conduct. These practices aim to protect policyholders from unexpected denials of coverage.