Carve-out definition

A term with two separate meanings, most commonly used to refer to medical services that are not included in a standard health insurance contract and are paid for separately – hence ‘carved out’ from the main provisions. Examples could include dental care, eye care and mental health cover. Sometimes employers will carve out cover from one company, while keeping the rest of the policy, and

A separate meaning is when a parent company sells a partial stake in a subsidiary firm in order to raise money in an IPO. Also known as a partial spinoff.