01 / The meaning
What it means.
The schedule may specify a fixed amount, a percentage or a different excess for particular events. Some policies apply several excesses together; others state that only the highest applies. A deductible can operate differently from a self-insured retention, particularly for defence costs or claims handling. Read the actual mechanism rather than treating every label as interchangeable.
Compare excesses against the losses your business could absorb without interrupting payroll or essential purchases. A lower premium paired with a larger excess transfers more of each applicable loss back to the business. Also check whether the amount applies per event, claim, vehicle, location or period. Several damaged items do not necessarily create one excess, and several allegations do not necessarily create several.
02 / Put it in context
A practical example.
Hypothetical example: hail damages three vehicles at one depot. The fleet wording determines whether an event excess or individual vehicle excesses apply; the owner cannot infer the result from the premium alone.
This example illustrates the term. It does not predict a claim outcome.
03 / Read the detail
What to check.
- Identify each ordinary and event-specific excess in the schedule.
- Check whether defence costs count towards the retained amount.
- Confirm how related losses and multiple insured items are grouped.
04 / Start a useful conversation
A question for your broker.
How much would we retain for this event, including any additional or percentage excess?
05 / Connect the terms
Keep the meaning in context.
06 / Apply it to your business
Related insurance guides.
Further reading
Read the source guidance alongside the relevant policy wording.
General information only. This does not take into account your objectives, financial situation or needs. Before acting, consider whether the information is appropriate for you. Cover is subject to insurer acceptance and the policy terms, conditions, limits and exclusions. Read the Financial Services Guide and the relevant PDS (where applicable) and/or policy wording before deciding.
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