by constructaquote - 23 June 2016
What would happen when having multiple claims against you?
Accidents can happen anywhere and any time; they can happen often or once in a blue moon. Either way, it’s essential that you opt for a public liability policy that best suits your needs.
When it comes to making a claim, there are two types of policies:
1. an ‘any one claim’ policy or;
2. an ‘aggregate’ policy
What is an ‘any one claim’ policy?
This basis entitles each claim made during the life of the policy (usually annual) to be covered by the full limit of indemnity.
Example based on £1 million indemnity limit
You can make multiple claims during the term of your policy each of them can be up to the equivalent of your indemnity limit.
So if you were to make three claims during your insurance, all reaching the cost covered by the indemnity limit, which in this instance is £1 million, they will all be covered.
However, if a single claim is made that exceeds your pre-agreed indemnity limit, you will be responsible for the additions.
So if you were to only make 1 claim during your insurance term that reaches £1.1 million, there would be outstanding costs of 100,000 that you will be liable to pay.
What is an ‘aggregate’ policy?
The main difference between an ‘any one claim’ policy and an ‘aggregate’ policy is that an ‘aggregate’ policy will not pay the maximum limit of indemnity for each claim made during your policy term.
Each successful claim made under an ‘aggregate’ policy will reduce the amount available for subsequent claims.
Example based on £1 million indemnity limit
If you were to make four claims during your insurance term, each totalling £250,000, then this does not exceed your overall indemnity limit of £1 million.
However, if you make three claims during your insurance term, each totalling £400,000, there would be a £200,000 shortfall that would not be covered under your indemnity limit.
You will be liable for any charges that exceed you indemnity limit.
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