In a Professional Indemnity claim, your excess, also referred to as a deductible, is usually payable once the insurer begins incurring costs related to your claim. This may include legal expenses, investigations, or settlement payments, depending on the structure of your policy. 

There are two main types of excess: 

• Costs ‘Inclusive’ means your excess applies to both defence costs and any settlement amount. You may be required to pay your excess early in the process, once legal expenses begin. 
• Costs ‘Exclusive’ means your excess only applies if the insurer pays a settlement or judgment. In this case, you may not need to pay your excess unless the claim results in a financial payout to the other party, saving you from having to pay your excess towards defence costs incurred on the claim. 

We will review your policy wording with you and explain when and how your excess applies, so you know what to expect if a claim arises.