Cryptic crossword clue
Section of coelacanth, illogically, found in insect colony 7

The most common and most likely answer to this crossword clue is the 7 letter word ANTHILL

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Buddy explains!

The straight part
We know that "insect colony" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case insect colony = anthill.
The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.
This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.

What does ANTHILL mean?

ANTHILL noun
  1. A cone-shaped formation constructed from sediment and other available materials by ants or termites. The colony nests underneath this cone.

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