exali Glossary
Your encyclopedia of technical terms used in the insurance industry
The insurance industry is full of technical terms—from insurance policies and obligations to recourse claims. To help you keep track of everything, the exali glossary explains the main insurance terms in a simple, understandable, and practical way.
In the exali glossary, you will find not only definitions, but also practical examples, legal information, and references to the appropriate insurance coverage. This way, you always know where the risks lie—and how to protect yourself against them.
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Defence Expenses (Indemnity Insurance)
Defence expenses are the costs incurred in defending against an (unjustified) claim. This includes both out-of-court and court expenses, such as: lawyer, court or expert expenses as well as witness expenses or travel expenses.
Defence expenses are paid by the insurer as part of passive legal expenses insurance.
Note
The costs for claims settlement or defence are paid by the insurer in addition to the insured sum/coverage sum (upper limit of benefits), as long as this sum is not exceeded in the compensation payment. If the liability claim exceeds the aforementioned upper limit, the insurer only bears the costs to the extent that they would have been incurred in the event of a liability claim in the amount of the upper limit. In the case of claims in US courts, the costs are usually limited to the insured sum.
(related terms: passive legal expenses insurance
Term: Defence Expenses (Indemnity Insurance)
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