Professional Indemnity - Limit of Indemnity

This is the maximum amount of money that a Professional Indemnity policy will pay out. It is often expressed as either 'in the aggregate' or 'any one claim'.

Aggregate or Any One Claims Basis

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.
	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.

Costs and Expenses in Addition

This simply means that any costs and expenses incurred in investigating or representing you would be paid in addition to the amount of damages (if any) awarded to a third party, and further that the costs and expenses will not be counted towards the limit of indemnity.

Further Information

As always, please refer to your individual policy documentation, or feel free to contact us for further information.