[C070]

clash cover
A reinsurance agreement applying to casualty insurance. This is an excess of loss agreement where the underlying amount to be retained by the ceding insurer is at an amount which is higher than the limit on any one reinsured policy. This agreement provides payment of loss when the unusual circumstances occur where two or more casualty policies experience the same occurrence of loss and the total amount of the payment of losses for the multiple policies exceeds the clash cover retention amount. This is sometimes known as contingency cover.

(See contingency cover.)