Liability Insurance

The policy provides protection for the company and its subsidiaries for claims brought in respect of negligent acts, errors or omissions in the performance of professional services. The policy is meant to pay for defense expenses and damages and includes amounts that the insured is legally required to pay because of judgments, arbitration awards or the like rendered against the insured, or for settlements negotiated in accordance with the coverage afforded by the policy.

Range of Risks Covered.

• Errors and omissions indemnity policy covers the company or an individual against litigation filed by a third party for financial loss during the course of providing services.
• Infringement of intellectual property including copyright, trademark and any trade secret is covered.
• Claims related to misuse or mis selling of any information that is either confidential or subject to restrictions is also covered.
• Covers litigation costs arising out of a case filed by the 3rd party. It covers compensation determined, as payable to third parties, by the courts.
• Cover claims against the estates and legal representatives of the insured.

Additional Benefits

• Other additional extensions available under indemnity insurance are defamation cover, libel and slander, and cover for employee dishonesty.
• All claims based on incidences that took place after the retroactive date are covered. This is the date that the first indemnity insurance was bought, provided renewals have been timely.

Which kind of expenses are covered under defense costs?
Errors and omissions policy will pay for the costs, fees and expenses incurred during investigation and trial period. It would include lawyer and legal representative fees and in some case settlement costs. Expenses of your representation at court, inquiry or any other proceeding which have direct relevance with any claim arisen is also covered under liability insurance.

What is not covered under professional indemnity insurance?
Any criminal, intentional, fraudulent, willful and malicious activities are not covered under the professional indemnity insurance. Also, bodily harm to any person and damage to the property is also generally excluded from the policy. Further, punitive fines, penalties or damages are not covered. Lastly, claims occurred prior to policy period are also excluded from the policy.

As many as 25,000 kidnaps are reported each year in over 40 countries, mainly in Latin America, Russia and Asia, with the average ransom payment doubling in the last few years and some payment demands exceeding USD 50 million. Whilst the most vulnerable companies are those that have employees based or travelling overseas; organizations which have high profiles, handle large amounts of cash, or work with sensitive information or technologies can be attached as well. Kidnap and Ransom Extortion Insurance not only protects against financial loss but also provides the services of leading crisis management and security consultants, to manage incident on the policy holder’s behalf.

Need for the KRE Policy -World over, terrorist activities have been increasing substantially over the last few years. Kidnapping for ransom money is also on the upswing. Any company of any size can be a target for extortion threats against the company and its employees. People tend to associate business extortion and kidnapping with global companies.

It Insures:

• Kidnap/Alleged Kidnap - A seizure or detention or carrying away by force or fraud of an insured person for the purpose of demanding ransom moneys.
• Extortion - Payment demands following a threat to injure, or kill an insured person; damage property; contaminate products; divulge trade secrets or destroy electronic data by computer virus.
• Wrongful Detention - Involuntary confinement by a government entity or insurgent organization
• Hijack - Illegal holding under duress of an insured person while travelling on any aircraft, motor vehicle or waterborne vessel.

What does the cover include? The cover Includes:-

• Ransom monies
• Loss-in-transit payment
• Ransom monies Related expenses: salary, personal financial loss, medical costs, rest and rehabilitation, travel and accommodation, loan interest, reward, interpreter, forensic analysis, other reasonable and necessary expenses, recall expenses, business interruption etc.
• Consultant costs
• Judgment, settlements and defense costs
• Death or Dismemberment arising from a covered incident

The Commercial General Liability policy is the ideal policy for organizations that are proactive in their approach towards Liability issues. This is a complete policy to provide seamless protection to the Insured, and covers Third Party Liabilities arising from various business exposures such as those arising from Premises, Products, Completed Operations, Advertising and Personal Injury and also provides supplemental payments, thus ensuring complete protection to the insured against Liability issues.

Legal liability generally arises from Premises, Products, Operations, Advertising and Personal Injury.

Who requires the protection of CGL Insurance? Whilst CGL like other stand-alone Public and Product Liability policies has universal applicability, the following types of organizations have greatly appreciated the availability of the CGL policy within India.

• Indian companies that have global operations and thus are exposed to legal claims worldwide.
• Foreign companies who have opted for the CGL policy in other jurisdictions and would prefer the same for their Indian operations.
• Companies who are contractually bound to carry Occurrence based liability covers.

Coverages of this Policy

• Coverage A - Bodily Injury & Property Damage Liability
• Coverage B - Personal & Advertising Injury Liability
• Coverage C - Medical Payments
• Coverage D - Supplementary Payments

Product Liability Policy covers all sums for which the insured might become legally liable to pay as damages in consequence of accidental death/bodily injury or disease to third parties and/or loss of or damage to third party property arising out of any defects in the products manufactured and covered under the policy after such products have left your premises. The insurance company will, subject to the limit of indemnity, pay all costs, fees and expenses incurred with their prior written consent in the investigation, defense or settlement of any claim and your costs of representation at any civil inquest, inquiry, or other proceedings in respect of matters which have a direct relevance to an actual or anticipated claim against your falling within the terms of this insurance policy.

Covered Incident means the recall, removal, recovery of possession or control, or disposal of your product from a distributor, purchaser or user because the consumption of your product has resulted in bodily injury or property damage, or poses actual and imminent danger of resulting in bodily injury or property damage.

Cyber Insurance is an insurance product used to protect businesses and individual users from Internet-based risks, and more generally from risks relating to information technology infrastructure and activities. Risks of this nature are typically excluded from traditional commercial general liability policies or at least are not specifically defined in traditional insurance products. Coverage provided by cyber-insurance policies may include first-party coverage against losses such as data destruction, extortion, theft, hacking, and denial of service attacks; liability coverage indemnifying companies for losses to others caused, for example, by errors and omissions, failure to safeguard data, or defamation; and other benefits including regular security-audit, post-incident public relations and investigative expenses, and criminal reward funds.