Avoid Inadequate PI

The Abacus PI policy wording underwritten by CGU Insurance, includes the following important benefits:

Unlimited Automatic Reinstatement

The Limit of Indemnity stated in the policy is the maximum insurers will pay for any one claim and in the aggregate in any one period of insurance. Any claim(s) against the policy will reduce/exhaust the limit of indemnity. Under the Abacus policy, the limit is automatically reinstated an unlimited number of times. Many other policy wordings only provide for one or maybe two reinstatements.

Costs Exclusive Limit

This means that insurers will pay investigation and legal costs in addition to the Limit of Indemnity. Without this feature, the limit has to be sufficient to pay for any damages plus any additional costs.

Costs Exclusive Excess

Under the Abacus policy the Excess only applies to damages, not the costs of investigation and legal costs. If a policy does not include this benefit, the Excess will apply to investigation and legal costs, even if the insured is not ultimately legally liable for damages.

Unlimited Retroactive Cover

The Abacus policy covers circumstances giving rise to a claim from the time the business commenced. Many other policy wordings only provide cover from the time the policy commenced (or for a limited time prior to the policy commencing).

If you are comparing premium quotations, make sure that you are comparing “apples with apples” and that the alternative quotation provides these benefits.