The legal agreement that defines what's covered, what's excluded, and your responsibilities.
An insurance policy is a contract that spells out the coverage provided, exclusions, conditions, limits, and your obligations. It's composed of declarations, insuring agreements, conditions, exclusions, and endorsements (DICEE).
An insurance policy is a legally binding contract between you and an insurer that specifies what risks are covered, what's excluded, your obligations, coverage limits, and how claims are handled. Policies follow a standard structure called DICEE: declarations, insuring agreements, conditions, exclusions, and endorsements. Read your policy carefully—coverage gaps are common.
Insurance policies contain five key components known as DICEE. Declarations show who's covered and for how much. Insuring agreements define what the insurer promises to cover. Conditions list your responsibilities. Exclusions specify what's not covered. Endorsements modify the standard terms. Together, these sections create the complete coverage contract.
A policy is the actual insurance contract providing coverage, while a certificate of insurance is a summary document proving you have coverage. Certificates are typically one page and show policy types, limits, and effective dates—you provide them to clients, landlords, or partners. Only the full policy contains the detailed terms, conditions, and exclusions.
Definitions are educational and may be modified by your specific policy language, endorsements, and state rules. For regulatory guidance, refer to the California Department of Insurance or the NAIC.
Last updated: July 2026.