|Civil Liability|| |
Civil Liability’ is liability of one party to another arising out of civil law, as opposed to criminal law.
There are four areas of Civil Liability.
A Civil Liability Professional Indemnity policies normally covers all four areas of civil law, but in some cases the policy may only respond to claims arising from the conduct by the insured of the nominated professional services stated in the policy schedule.
|Costs Exclusive Excess|| |
A Costs Exclusive Excess means the excess does not apply to costs and expenses incurred by the insurer or the reasonable costs incurred by the insured (with the insurer’s prior consent), in defending, investigating or settling any claim. The excess applies to the compensatory amount of a claim payment only.
Example: An insurer closes a claim after incurring $10,000 in solicitors fees defending an action, under this basis you pay no excess.
|Costs Inclusive Excess|| |
A Costs Inclusive Excess means the excess applies to costs and expenses incurred by the insurer or the reasonable costs incurred by the insured (with the insurer’s prior consent), in defending, investigating or settling any claim.
For example: If the insurer closes a claim after incurring $50,000 in solicitors fees defending and action and your excess is $15,000 - you pay $15,000 to the insurer.
|Cost In Addition - Limit of Indemnity|| |
The Limit of Indemnity is the maximum amount the insurer will pay in respect of any one Claim first made
|Automatic Reinstatement|| |
An Automatic Reinstatement allows the Limit of Indemnity to be 'reinstated' for new, unrelated claims should the original
sum insured be depleted by a claim or series of claims, that equals the limit of liability.
|Jurisdictional Limits|| |
The Jurisdictional Limit refers to the countries where the policy will respond to claims made against the insured.
Territorial Limits refers to where the insured can conduct there professional services.
The Retroactive is the date from which the Professional Indemnity policy will respond to claims not already notified.