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⍰ ASK What is the role of excess and deductibles in company insurance policies?

In insurance, excess and deductibles are important.

Excess, also called deductible, is what you pay before insurance helps. It's a way to manage risk and make sure both you and the insurer care about avoiding problems.

These things affect how much insurance costs. If you pay some of the risk, the insurance can be cheaper. It also makes people more careful because they have to pay if something goes wrong.

Excess and deductibles stop people from taking too many risks just because they have insurance. Paying part of the cost makes everyone responsible and careful.
 

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