What is meant by “coverage territory” in insurance policies?

The term "coverage territory" in insurance policies specifically refers to the geographical area where the insurance coverage is applicable. This means that the terms of the policy, including what is covered and under what circumstances, are valid only within this defined area. For example, if a policy states that coverage is valid within the United States, any incidents occurring outside this region would not be eligible for coverage under that policy. Understanding coverage territory is crucial for policyholders to know where they are protected and under what conditions their insurance will respond.