Legal expenses
The following exclusions usually apply:
- legal action for which indemnity in respect of its costs is recoverable elsewhere (applicable to commercial legal protection policies)
- losses incurred prior to written acceptance of the claim by the insurer
- legal action pursued by the insured against the advice of the insurer’s nominated solicitor, ensuring that only actions where there is a reasonable chance of success are pursued.
Credit insurance
The credit risk that is insured must have a direct link with an underlying trade transaction, i.e. the delivery of goods or services. If no such direct link exists, the outstanding amount is not insurable under a trade credit insurance policy.
To be insured, transactions must not be subject to disputes. Parties are usually requested to resolve any dispute, prior to involving the insurer.
Cover is usually subject to an excess.
Fidelity guarantee
The following exclusions usually apply:
- loss caused by an employee committed prior to the date of acceptance of that employee
- loss where the insured continues to trust an employee with money or goods after becoming aware of any material facts concerning the honesty of that employee
- unexplained shortages
