What is a policy excess?
The 'excess' is the first portion of a professional indemnity loss or claim that is borne by the insured.
An excess can be either voluntary to obtain a lower premium or imposed due to underwriting reasons. The intention of the excess is, in part, to give the policyholder a financial stake in minimising the risk of a claim occurring with the financial cost being a reason to avoid the situation happening. It also avoids smaller claims being paid under the policy for amounts which fall within the policy excess.
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