When arranging your Professional Indemnity Insurance it is important to understand that there are two fundamental ways in which the cover can be arranged. This can be crucial when you are faced with a large or multiple claims.
The two ways of arranging the cover are; Aggregate basis and Any One Claim basis. As you can see from the diagrams below, with Aggregate basis your claims are all paid out of the indemnity limit whereas with Any one Claim you are entitled to the full indemnity limit for each and every claim.
| Aggregate Each claim is paid out of the specified Indemnity limit and reduces the amount available for subsequent claims. |
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| Any One Claim Every single claim you make during the insurance year is entitled to the FULL indemnity limit. |
If you have a number of claims in a year, the Aggregate basis could mean that you run out of cover or that you do not have enough cover left in order to meet a claim in full. However, with the Any one Claim basis you do not have this issue as all claims would be met up to the indemnity limit.
If you have any queries regarding these issues, please give us a call.
[...] policy holder actually chooses the limit of indemnity for the PI insurance. The limit will operate or will depend on an “each and every” claim basis or an “aggregate” [...]
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