Chapter 5 - Pecuniary Insurance

Question 1

What is the basic purpose of legal expenses insurance?

Answer 1

To provide insurance for costs arising out of the need to seek legal advice or to pursue or defend a legal action

Question 2

What are the two main types of legal expenses cover available on respect of legal expenses insurance?

Answer 2

• Group legal benefits policies and

- Commercial legal protection policies

Question 3

What optional extensions are available to an insured when taking out LE insurance?

Answer 3

• Libel and Slander protection
• Cover against costs for involvement in public enquiries
• Cover against the cost of investigations by professional bodies
• Cover against the cost of taxation proceedings

Question 4

What is the purpose of business interruption insurance?

Answer 4

To cover the actual or potential loss of earnings (gross profit) and additional expenses incurred as a result og material loss.

Question 5

How do the standard perils covered by the business interruption policy differ from the standard perils in the material damage policy?

Answer 5

Business interruption covers explosions of domestic and non domestic boilers.

Material damage policy covers explosion of domestic boilers only.