Newcomers to professional indemnity insurance may be a little confused over the difference between two types of policy – ‘any one claim’ and ‘aggregate’. So here’s a helpful explanation.
When you take out an any one claim policy, you are covered up to the full limit of each claim made during the insurance period. When you take out an aggregate policy, however, you are instead covered up to the full limit for all claims combined.
This is best explained with an example. In this scenario, there are two claims to be made against a £200,000 professional indemnity policy, both of which are worth £120,000.
With an any one claim policy, you count each £120,000 as within the £200,000 threshold, so you get £240,000 paid out.
But with an aggregate policy, you count both claims together. This means that as £240,000 combined they exceed the threshold and you only receive £200,000, with the remainder needing to be covered by another means.
Hopefully that clears up the difference between the two. If you’re looking into pursuing the first path, make sure you get in touch with Custodian Insurance as we offer great deals when it comes to any one claim limits.
Contact us today on 0207 648 4343.