What does Mix of Services mean? Read on to discover the definition & meaning of the term Mix of Services - to help you better understand the language used in insurance policies.
Mix of Services
A term used in conjunction with underwriting several types of professional liability insurance, notably accountants, lawyers, architects and engineers, and insurance agents. It refers to the respective proportions of specific services provided by a given professional firm, a factor that influences the expected frequency and severity of losses and therefore the premium and scope of coverage afforded. For example, assume that plaintiff personal injury (PI) cases (a high exposure area) comprise the majority of Law Firm A's work. In contrast, most of Law Firm B's work is in the area of trusts and estates, a relatively low exposure activity. All other things being equal, given its mix of services, Law Firm A will probably pay a higher premium and may be offered more restrictive coverage, compared to Law Firm B.
We hope the you have a better understanding of the meaning of Mix of Services.