We make our policy documents as easy as possible to understand, but the legal terms below can still be confusing, so here they are in plain English.

**Uninsured Percentage**

The uninsured percentage is 10% of the total sum you insure. This means that if the insured invoice value was £50,000, we would pay out £45,000 (- 10%) in the case of a successful claim. The purpose of the uninsured percentage is to incentivise responsible trading.

**Maximum Claim Amount**

Your Nimbla policy covers 90% of the net value of your invoice (not the gross value because VAT is recoverable from HMRC). if the insured invoice value was £50,000, we would pay out £45,000 (- 10%) in the case of a successful claim. It is standard industry practice to leave the remaining uninsured percentage (10% in this case) to incentivise responsible trading.

**Maximum Policy Limit**

This is the invoice value minus the uninsured percentage of 10%. For example if an insured invoice value was £50,000, we would pay out £45,000 in the case of a successful claim. So in this case, £45,000 is the Maximum Policy Limit.

**Insured Loss**

This is the amount that the debtor hasn't paid you when they become insolvent. For example, if the insured invoice value was £50,000 but the debtor had already settled £10,000 when they became insolvent, we would calculate the claim value as £40,000 (£50,000 - £10,000).

**Loss Payee**

This is the person or organisation who will receive the claim payment. Invoice insurance is usually requested by organisations that factor or fund invoices, to ensure that they get the money they loaned back.