Professional Insurance Jargon Explained – Part. 1

Taking out professional indemnity insurance or any other policy is not always entirely straightforward, as each business will need cover that tailors specifically to their needs. To achieve this level of personalisation, it can be well worth your while as a future policy holder to do a little research beforehand.

The following explanations – some of the most confusing or technical terms sometimes associated with professional insurance – should prove quite useful:

Aggregate limit of indemnity – The maximum amount you will be paid by your insurer following a claim

Consequential loss – Put simply, this the value of any losses you have suffered as a result of direct damage – e.g. loss of profits

Deferred premium – This is where you agree with your insurer to pay your insurance premium in instalments rather than all at once

Financial Ombudsman Service – This is an organisation which handles disputes between consumers and financial services or more specifically in the context of insurance, complaints between policy holders and insurers.

Loss Adjuster – A qualified and impartial professional employed to investigate, in detail, complex cases or those involving substantial losses. This person’s task is to determine the extent of liability and negotiate a settlement that suits all parties.

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