Limited Events Cover V Accidental Damage

The purpose of insurance is to provide protection when you need it most, yet the selection of the insurance protection is often chosen on price, not the quality of the protection.

The challenge with a Limited Events insurance coverage (sometimes referred to as Defined Events) is that the insurance only responds to the listed events, so many exposures remain uninsured.  This often can be discovered too late, leaving you financially exposed.

An example where the Limited Events does not respond is where a child plays an interactive computer game, and accidentally lets go of the game controller, which then hits the T.V and cracks the screen.  The definition of Impact in a Defined Events cover would exclude this, as the cover only applies to:

• impact by a vehicle,
• aircraft or space debris,
• a falling tree,
• an animal,
• a TV aerial or falling power poles.

Another key example is the inherent defects exclusion within the Limited Events cover that acts as a total exclusion, whereas within the Accidental Damage coverage the exclusion only applies to the part, and resultant damage remains covered.

In some Limited Events cover, many of the benefits are almost half of that offered by an Accidental Damage cover, so careful consideration should be made when selecting the insurance protection.  There remains circumstances where a Limited Events cover will meet the need, but conversely there are perhaps many examples where decisions are made on price and not the level of protection offered.

We have prepared the following table to help identify the differences, and support the decision making with establishing the insurance cover to better meets your needs.