iRisk | Liability Insurance

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Public Liability Insurance

Public Liability Insurance offers the optimum protection to the business in case any third-party liability arising out of injury or property damage. Public exposure or liability affected by law can destroy the promising future of any business. With this insurance policy, you can mitigate the financial burden that may arise due to third-party liabilities, for this reason, it can also be called third-party liability insurance. It is commonly known as Commercial General Liability Insurance as well, which works as a combination of both Product Liability and Public Liability insurance policies

Features & Benefits

Public liability insurance in India is specially designed for the companies or individuals who may be held liable or legally responsible to pay for the injury or other related damages caused to a third party. It is recommended for professional organizations like hospitals, BPOs, doctors, and even business owners. You can protect your business from unforeseen events by purchasing a public liability insurance policy that comes with the following benefits:

Bodily Injury
Property Damage
Personal Injury
Liability Arising out of Advertising Rights
Contractual and Tenant’s Liability
Lawsuits, Investigations and Settlements

Coverage

The policy covers the following eventualities:

Lawsuits, Investigations, and Settlements: If your business is being sued for any damage caused to a third party, the insurer covers the expenses of investigating officer or lawyer.
Medical Expenses: In case of an injury to a third party attending your office, the medical expenses will be covered
Damage or injury due to an accident in your premises or from your products, operations, or promotional advertisements leading to a third-party liability claim will be covered.
Liability arising due to damage to a third party’s property while visiting your office will be covered

Exclusions

The policy does not cover liability arising out of:

Earthquake, earth-tremor, volcanic eruption, flood, storm, tempest, typhoon, hurricanes, tornado, cyclone or other Similar convulsions of nature and atmospheric disturbance.
Deliberate, willful or intentional non-compliance of any Statutory provision or disregard of the insured’s technical or administrative management.
Loss of purely financial nature such as loss of goodwill, loss of market etc.
All personal injuries such as libel slander, false arrest, wrongful eviction/ detention, defamation etc., and resultant mental injury, anguish or shock.
Infringement of plans, copyright, patent, trade name, trademark, or registered design.
Fines, penalties, punitive or exemplary damages or any other damages.
War group nuclear group and Act of God of perils.
Transportation of materials and dangerous substances unless specifically covered.
Ownership, possession or use by or on behalf of the insured of any aircraft, watercraft or hovercraft.
Injury to any person under a contract of employment/apprenticeship, with the insured, when such injury arises out of the execution of contract.
Arising under the Public Liability Insurance Act or any other statute that may come into force after the issue of this policy.
Assumed by the insured by any agreement and which would not have attached in the absence of such agreement.

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Product Liability

The product liability insurance is crucial for companies whose products are widely used such as chemicals, tobacco, medical products, food, recreational products and others. It covers claims, which the insured becomes legally liable to pay to third parties as a result of bodily injury or property damage arising out of the use or consumption of products manufactured, sold and /or distributed by the insured.

Features and Benefits

The policy aids a product manufacturer, to deal with any legal obligations and third-party liabilities that might arise due to an accident — ensuring that the damage or bodily injuries caused to the third party are duly compensated. Its key features are:

Vendor’s Liability Extension
Cover for exports when domestic turnover is also covered
Technical Collaborators Liability Extension
Coverage for defense cost incurred with prior consent
Benefit of Retroactive Date

Coverage

- Accidental death/bodily injury or disease to any third party
- Accidental damage to property belonging to a third party
The defect in the product may be a manufacturing defect or may even be due to faulty packaging, delivery specifications or instructions as to use of the product.
Inappropriate usage of the product by the consumer due to absence of/ or wrong labels indicating usage precautions/warnings and warranties or representations made at any time with respect to the fitness, quality, durability or performance or use of “your product.”
The policy covers the sales turnover of the company- both domestic and/or exports

However, the policy offers the benefit of retroactive date, i.e. a date stipulated in a claims-made Liability policy declarations section as the first date of incidents covered by the policy. The retroactive date is designed to provide coverage for claims resulting from incidents that take place before the current policy term.

Exclusions

The following eventualities are not covered:

Costs arising out of recall of any product
Deliberate, willful or intentional non-compliance of any statutory provision.
Insured’s Contribution – Deductible
Arising out of pure financial loss
Arising out of fines, penalties, punitive and/or exemplary damages

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Coverage
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Professional Indemnity

Professional service providers may become legally liable to pay for damages due to negligent act or errors & omissions during the discharge of their professional duties. While they may have to pay for awards of civil liability, there are additional costs of legal fees and legal expenses are also incurred to defend the claim. Notably, judicial activism is increasing than before thus making the professional service providers subject to greater litigation risks & actions on slightest of negligence or errors.

Scope

The policy is highly suitable for:

Lawyer and Law Firms
Architectures, Interior Designers and Companies
Pavers for asphalt or concrete finishing.
Chartered Accountants and Accounting Firms
IT Consultants and Companies
Consultants, Management Consultants, & Financial Advisors
Medical Practitioners
Surveyors and Valuers
Professionals and Professional bodies

Benefits

It protects your business against claims for loss suffered by a client or a third-party due to errors made by you and are found to be negligent. The benefits are as follows:

Financial Protection from Lawsuits
Peace of Mind
Increases Credibility of the organisation
Smooth running of your business
Increased chances of winning tenders

Coverage

The scope and nature of cover varies with the profession:

Medical professionals such as physicians, cardiologists, surgeons, and pathologists are given protection against legal liability claims made by the patients due to death or bodily injury. Defence cost is also included where the insured can add other consulting partners or doctors as well as assistants working under them. Lower grade employees like peons, housekeeping staff are also included, if the policy mentions, for errors, mistakes or omissions, negligence while performing a duty.
On the other hand, engineers and architects are protected against any legal liability that arises out of any mistake with regards to delivering designs, for providing defective constructional designs, or causing death to the third party.
For lawyers and accountants, the coverage is given for any legal liability claim due to the monetary losses to clients arising out of omission or mistake made from the insured’s end or by his paid employees. For instance, if someone’s legal representative fails to present a paper regarding the case he is taking up behalf of the client, resulting in the loss of complete case, the attorney could be sued by his client under an omission claim.

Exclusions

This policy does not cover damage due to:

Intentional Damage
Illegal Acts
General Liabilities
Terrorism
Contractual Liability
Employment Dispute

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Scope
Benefits
Coverage
Exclusions

Directors and Officers Liability

The D&O policy provides cover for the personal liability of directors and officers arising due to wrongful acts in their managerial capacity. Defence costs are also covered and are payable in advance of final judgment. This policy provides protection for claims brought against directors, officers and employees for actual or alleged breach of duty, neglect, misstatements or errors in their managerial capacity.

Scope

In case an organization incurs any losses due to erroneous actions or decisions taken by the directors and officers in fulfilling their duties according to the memorandum and articles of association.
In case of losses resulting from claims filed against them by any wrongful act in their capacity.
With the written consent of the insurance provider, any legal expenses resulting from the prosecution of any director or officer for any examination, inquiry, investigation, or proceedings by the concerned authority.
Any expenses incurred by the shareholder of a corporation for pursuing a claim accusing any director or officer, and organization is lawfully obliged to pay as per the ruling of a court.
It provides indemnity to the legal heirs/legal representatives of the director or officer in case the director or officer becomes insolvent.

Coverage

This policy covers former, present and future members of the board of directors, the management and any employee performing a managerial or supervisory role. It includes:

Advancement of Defence costs
Claims made principle: claims must be made during policy period
Right to defend cover
Cover for Subsidiaries
Outside Directorship coverage
Cover for Retired Directors
Employment Practice Liability (EPL) cover for directors and officers
Cover for failure / negligence to supervise against any Professional Indemnity related claims
Cover for Regulatory Crisis Response
Cover for Assets and Liberty Costs including prosecution, bail bond and civil bond expenses
Cover for damage to reputation
Bilateral Discovery Period
Cover for Heirs, Estates and Legal Representatives
Emergency Costs cover
Kidnap response cover
Special excess protection for non executive directors
Cover for pollution related claims for defence costs and shareholder claims
Insured vs Insured (defence cost cover)
Severability: non-guilty insured is covered

Exclusions

This policy does not cover damage due to:

Fines and penalties and claims for seepage or pollution.
Claims for bodily injury, property damage
Excluded territories/jurisdiction
Known acts prior to inception
War & nuclear risks
Waiver of subrogation.
Criminal acts, libel, slander or other defamations and professional liabilities e.g. architects, managers, etc.
Major Shareholders Exclusion: Any claim brought by major shareholders having more than stipulated % of voting stock or by any security holder unless the security holders without instigation and totally independent of major shareholders bring about the claim.
Pending and Prior litigation exclusion.
Entity EPLI and Entity Security claims (except if covered as an extension).
Auto acquisition of subsidiaries with an asset size of more than stipulated %
Environmental liability & ADR claims originating from US/Canada.