1. The amount that a reinsured can recover under an excess of loss reinsurance. This is usually defined as all payments in respect of the claim, including loss adjustment expenses but excluding the reinsured’s office expenses, less recoveries by way of salvage, other reinsurances or otherwise. The clause allows payment to the reinsured before all recoveries have been made and before the ultimate net loss has been determined. 2. In an umbrella liability policy it is the amount actually paid or payable for which the insured is liable (including or excluding defence costs) after deducting recoveries and reinsurance that inure to the benefit of the contract.