What are wordings in insurance?
policy wording in Insurance Policy wording is the terms and conditions and definitions of insurance coverage as they are written down in the insurance policy. Any ambiguity in an insurer’s proposal form or policy wording will be construed against the insurer.
What is a drop down deductible?
A drop-down clause in an insurance-policy requires an excess insurer to provide coverage to the insured. Such coverage is to be provided even though the underlying coverage has not been exhausted. This is so because the underlying insurers are insolvent.
What is umbrella drop down coverage?
When an umbrella policy contains a drop down clause, it automatically “drops down” to cover the expenses not covered by the general liability policy. Umbrella insurance may also be written to expand coverage on events that were not covered originally.
Do excess policies drop down?
Drop-down coverage. In addition to providing coverage after per-occurrence limits of underlying policies have been exhausted, excess policies often “drop down” to replace underlying insurance coverage when the aggregate limits have been exhausted.
Why is the wording of a policy important?
Policies address pertinent issues, such as what constitutes acceptable behavior by employees. Procedures clearly define a sequence of steps to be followed in a consistent manner, such as how the organization will respond to any policy violations.
What is a 72 hour clause in insurance?
72 hours clause It is agreed that any loss of or damage to the Insured Property arising during any one period of seventy two (72) consecutive hours, caused by storm, tempest, flood or earthquake shall be deemed as single event and therefore to constitute one occurrence with regard to the Excesses provided for herein.
What is 72 hours clause in fire insurance?
72 hours occurrence clause: In this clause, the loss or damage caused to the Insured property during any one period of 72 consecutive hours, considers a single event. The cause for loss or damage can be a storm, tempest, flood, or earthquake.
What is top and drop reinsurance?
Top and Drop coverage provides some clear and immediate advantages. In particular, it enables an insurer to buy top layers of coverage for a first loss event for a competitive premium knowing that if the top layer capacity remains unused, it will automatically drop down to cover further events.
Where does umbrella liability coverage extend to?
Umbrella insurance also typically extends to other members of your household, such as your spouse, children and other relatives who live in your home and who do not have auto or property insurance in their own name.
What is a drop down clause?
Drop Down Provision — a clause in umbrella policies providing that the umbrella will “drop down” over reduced or exhausted underlying policy aggregate limits. Some umbrellas maintain their own coverage terms when they drop down; others assume those of the primary policy.
What happens if policies and procedures are not followed?
Employees are often disciplined when they do not follow procedures, Organisations may end up at the Employment Appeals Tribunal or another Employee redress forum, and pay out substantial awards, for not following theirs.