Suspension Provision

What Does Suspension Provision Mean?

A suspension provision is a clause in an insurance policy that indicates the circumstances or conditions that may constitute a suspension of coverage. If coverage is suspended, then the policyholder cannot receive benefits, even if they have paid the premiums for that time period.

It is more commonly known as suspension of coverage.

Insuranceopedia Explains Suspension Provision

Sometimes, an insurer includes suspension provisions into a policy that prevent coverage under certain conditions because the insurer believes that the particular conditions are too high risk. For example, an automobile insurance company may suspend coverage if the person intends to deliberately use the car in dangerous circumstances, such as action sequences in movies or bumper car derbies. If the person decides to proceed anyway, they would not be financially protected in the event of damages.