What Is XCU Exclusion?

An XCU exclusion removes liability coverage for property damage caused by explosion (X), collapse (C), or underground damage (U), such as blasting, excavation that undermines a neighbouring structure, or striking a buried utility line. Insurers sometimes add it to the commercial general liability policies of excavation, demolition, foundation, and other contractors whose work carries those risks. If your policy has one, ask your broker whether it can be removed or the coverage bought back.