Excess (also called deductible) is the specified amount the insured must pay towards each claim before the insurer's liability is triggered. For example, if a claim totals $20,000 and the policy excess is $5,000, the insurer pays $15,000 while the insured bears the first $5,000. The excess amount is stated in the policy schedule and typically applies to each and every claim, though some policies may specify an aggregate annual excess or waive the excess in certain circumstances. Policies may feature different types of excess including standard (compulsory) excess, voluntary excess (elected by the insured to reduce premium), and specific higher excesses for particular risks or claim types.
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