Which term refers to the geographic area where an insurance policy provides coverage?

The term that refers to the geographic area where an insurance policy provides coverage is "Coverage Territory." This term specifically defines the limits within which the policy will respond to claims or provide protection against insured risks. It is crucial for both the insurer and insured to understand what areas are included in this territory, as coverage may vary based on location and specific policy stipulations.

The other terms mentioned do not accurately represent this concept. "Exclusion zone" typically refers to areas specifically excluded from coverage and, therefore, does not apply. "Policy Area" is not a standardized term used in insurance contexts to define geographic coverage. "Insured Region" may imply a geographic area but lacks the precision and recognized usage of "Coverage Territory" in insurance policies. Understanding the proper terminology ensures clarity regarding where and how coverage applies, which is essential for risk management in commercial insurance.