Liability Insurance
Liability insurance, also known as third-party insurance, compensates you for damages caused to third parties. Your insurance company handles this.
There are several kinds of liability insurance. They are as follows:
A Commercial General Liability insurance policy is one of the most important policies that all businesses should consider. There is the possibility of an accident. Any unexpected and unanticipated event to a customer, vendor, or third party involved with your business is considered an accident.
A simple slip and fall on the premises can be disastrous, leading to a potential lawsuit. It will protect businesses against any legal liabilities resulting from bodily injury or property damage caused by your business operations.
It covers both public and product liabilities under one single policy
Public Liability Insurance Policy covers legal liability to third parties in or about the premises. This becomes necessary, especially when a third party will be moving in and out of the premises such liabilities include:
- Death, bodily injury to a third party
- Damage to third-party property
Product Liability Insurance will cover the compensation cost against financial losses suffered by a third party arising from the use or consumption of a faulty product. The third-party has to suffer bodily injury or property damage. Any damages because of personal and advertising injury caused by an offence arising from the business.
This insurance covers payments, medical expenses and damages, including Legal liability expenses, claimant’s costs, fees and defence costs—damage costs – monetary sums according to judgments or awards and settlements.
Directors and Officers (D&O) Insurance provides financial protection for a manager in the event of a claim against them alleging a wrongful act in a managerial or supervisory role in the organisation.
Risks covered under D&O insurance:
- Regulatory investigations.
- Accounting irregularities
- Exposures relating to mergers and acquisitions
- Vulnerability to shareholder/stakeholder claims:
- Employment practice violations, including harassment, discrimination allegations, and wrongful termination.
- Securities claims, those related to shareholder value
- The D&O insurance pays for Defense costs, Public Relations expenses, Extradition costs Emergency costs advancement.
This type of insurance protects the insured against legal liabilities that may arise as a result of any neglect, error, or omission committed in a professional capacity by the insured or any partner, director, or employee of the insured.
Many professions are required to have PI insurance coverage as a regulatory requirement or as part of their professional authorisation. These professionals include doctors, engineers, solicitors, accountants, architects, insurance brokers, and financial advisers.
The policy covers all costs, legal charges, and expenses required to prosecute the cases brought against Professionals while discharging their professional duties. It covers Professional negligence, loss of documents or data and Unintentional breach of copyright and/or confidentiality.
