Liabilities
Most of the managerial & professional liabilities that may affect any organization can be indemnified by Insurance. With people having background from various sectors coupled with extensive knowledge about operations, exposures and appropriate risk management techniques; we understand the risks affecting an organization.
We analyse risks at the macro and the micro level before offering a solution. We endeavour to provide the best coverage and ensure that we negotiate a reasonable price. The fact that we have excellent relationships with our markets makes this task easier.
Some of the products are:
- Directors & Officers Liability
- Error & Omission Insurance for professional like Doctors, Medical Establishment, Chartered Accountants, Lawyers, Solicitors.
- Error & Omission Insurance for Consulting Engineers & Architects, – Project PI
- Error & Omission Insurance for Technology Industry
- Professional Indemnity
- Public Liability
- Product Liability
- Commercial General Liability
- Cyber Liability
- Public Offering of Securities Insurance (POSI)
- Clinical Trial Liability Cover
- Workmen Compensation / Employers’ Liability Insurance etc.
- Product Recall expenditure / Guarantee / Financial Loss Insurance
- Product Contamination Product Insurance
- Entity Employment Practice Liability Insurance
- IMI and V-Cap Fund Liability Insurance
- Media Liability Insurance
- Reps & Warranty Insurance
- Kidnap & Ransom Insurance
Apart from the above vertical, we also handle other Specialty Lines of business like Event Insurance, Film Production Insurance, Art Insurance.
According to the client’s financial exposures, we help you find the perfect solution by customizing the above covers and protect you from the heavy liability exposures.
Directors are now perceived as professional managers and professionals who should be accountable for their actions. The increase in litigation against directors reflects a change in the attitude of the general public towards greater management accountability and hence the position of a Director/Officer is becoming far more onerous.
A Director/Officer is open to actions from Shareholders, Employees, other Third Parties and indeed the Company itself. He is exposed to the extent of his personal fortune.
Moreover, the revised companies Act has defined and increased the responsibility of directors/ officers at large. Major changes like introduction of class action suits, increase in civil fines and penalties, speedy disposals of disputes etc. have made it all the more important to manage the risks by a comprehensive risk transfer mechanism.
What is Covered?
The Policy covers the legal liability including costs to defend any civil and / or criminal action against the Directors and / or Officers holding a responsible position in an organisation made by any Shareholder/ Employee/ Customer/ Competitor/ Member of Public or any Regulatory Body for any wrongful act, error or omission committed by them.
When the Policy is Operative?
The coverage is available only on claims made basis i.e. only when the affected party has made a claim on the Director/Officer during the currency of the Policy, irrespective of when the wrongful act/error/omission has actually occurred.
How the Policy is designed?
The Policy coverage is split into two Sections as under:-
- Company Reimbursement is insurance of the organisation itself. It covers the obligation of the Company to indemnify its Directors/ Officers to defend against any civil/criminal action. The reimbursement is limited to only the legal costs expended.
- Directors and Officers: If the action against the Directors/Officer is successful, then he is on his own and is exposed to legal costs as well as damages awarded against him. Then the Employer (Company) will obviously not indemnify him and this section comes in to operation, provided the Director/Officer has not acted in deliberately dishonest manner.
Whether individuals names of Director/Officers to be specified:
No it is not necessary, but the designation/rank of Officers desired to be covered should be specified.
What are the Special Exclusions?
- Fines and Penalties and claims for seepage or pollution.
- Claims following deliberate dishonesty or fraud by any Director/ Officer.
- Criminal acts, libel, slander or other defamation and professional liabilities.
Premium Rating:
Certain factors that determine the premium are:
- Past financial/ claims history
- Asset size
- Organisational structure
- Geographical spread
- Territories covered (USA Subsidiaries)
- Recent profile (mergers/ takeovers etc.)
- Sum Insured/ Deductibles
This note includes the basic aspect of the Directors and officers Liability Insurance Policy.
Product liability insurance covers the cost of compensating anyone who is injured by a faulty product that your business designs, manufactures or supplies. Your business may be held legally responsible for any injuries to people or damage to property caused by a faulty product. You can be held liable for faulty products even if you did not manufacture them.
Product liability insurance protects you against the cost of compensation for:
- Personal injuries caused by your faulty product
- Loss of or damage to property caused by your faulty product
- Defence cost
The policy can be extended to cover the following
- Exports
- USA & Canada
- Organisation for Economic Cooperation & Development (OECD), countries Other than above
Vendors Liability: The Policy covering exports may be extended to cover “Vendors Liability”.
- Named Vendors
- Unnamed Vendors
Products Manufactured by Sub-Contractors and/or loan and licensed manufacturers on their own brand name.
Technical Collaborators Liability – The policy can be extended to cover legal liability of collaborator with respect to the technical collaboration agreement between the named insured and the collaborator.
The coverage can be modified according to the need and exposure of insured.
The Public Liability Act 1991 is
“An act to provide for public liability insurance for the purpose of providing immediate relief to persons affected by accident occurring while handling any hazardous substance and for matters connected therewith or incidental there to”
If Your Company is into handling of hazardous goods, it is compulsory to be insured under the Public Liability Act Insurance. A list of HAZARDOUS GOODS has been given in the act along with quantities over which if these goods are handled; then the Act states that PLI Act must be taken.
The Minimum compensation under the act is as follows –
The limits of compensation payable are defined in the Act as Rs. 12,500
Maximum for Medical expenses per person-
Rs. 25,000 Maximum for Fatal accident in addition to medical expenses
Rs. 25,500/- for permanent total or permanent partial or other injury or Sickness
Rs. 1000 per month upto maximum of 3 months for loss of wages due to temporary partial disability provided the victim has been hospitalized for a period exceeding 3 days and is above 16 yrs of age
Upto Rs. 6000 depending upon actual damage for damage to third party property.
With the growing awareness amongst the general public regarding their rights and remedies have lead towards an increasing trend to claim for any suffering caused to them.
Thus including this aspect in the risk management philosophy of the company has become a practice.
Moreover considering the manufacturing risks now days due to use of certain materials/equipment, high concentration of estimated liability at one place like the surrounding area of the industrial setup, if any mishap occurs then chances of damage to surrounding property is high, both in terms of severity and quantum.
Visitors like clients, officials for regulatory bodies, other visitors etc. also pose a risk as high profiled visitors may turn out to be high exposure to liability lest they suffer anything due to their visit to the premises.
Coverage:
- The insurer undertakes to indemnify the insured for bodily injury or property damage claims arising out of accidents, arising out of and in connection with business, and the defence costs incurred in connection thereto.
- The policy also covers if any liability towards third party arises out of Canteen services, social services, welfare services etc. within the premises
- Instances where the claim is made towards any officer / representative purely for any property damage or bodily injury instead of the company, then also the claim is payable if it is within scope of coverage
Certain Add on Coverage which may be opted as per requirement of business –
- Pollution Coverage
- Discharge of Treated Effluents
- Act Of God Perils Extension
Pollution Legal Liability is a flexible, modular coverage form that enables property owners, operators and buyers/sellers to mitigate their risks related to the environmental liabilities that can result from site ownership or operation.
Policy Features
- Pre-Existing and New Pollution Conditions
- On-Site and Off-Site Pollution Conditions
- Bodily Injury and Property Damage
- Clean Up Costs
- Restoration Costs
- Emergency Response Costs
- Transportation of Cargo
- Non-Owned Disposal Sites
- Business Interruption Expense
- Natural Resource Damage
- Worldwide coverage, where permissible by law
- Optional Enhancements
- Coverage for Underground Storage Tanks
