Liability Insurance
Liability Insurance Policies pay for the compensation amount awarded/settled (including interest) plus defense costs incurred upto limit of liability in policy which are generally expressed for Any One Accident (AOA) and Any One Year (AOY). As against this, Statutory Liability Policies have limits as per the respective Law. Followings are the most common form of Liability insurance policies being offered by insurers in India:
D&O Policy covers legal liability of the Directors and Officers of
an entity, for any wrongful act, error or omission committed by
them, resulting in legal action being instituted against them by
specified third parties like customers, competitors, regulatory
bodies, members of public and shareholders. Legal action brought by
employees of the Company are usually granted as an optional
Extension under the Policy, called Employment Practices Liability
Extension
Businesses are witnessing an exponential increase in the
cyber-attacks recently due to remote working, political agendas or
vendetta, intricate and exposed supply chain management systems and
extensive data collection activities being performed. Cyber
Liability Insurance Policy covers specified risks arising due to
network intrusion by an unauthorized person
Commercial General Liability Insurance Policy protect businesses
against liability claims for bodily injury & property damage arising
out of incidents occur on the premises, operations, products, and
completed operations.
Workmen’s Compensation Insurance Policy covers employers in respect
of liabilities arising under the Employee’s (Workmen’s) Compensation
Act due to a workman contracting any of the occupational disease (as
listed out in Schedule III of the WC Act), provided the person has
been in the exclusive employment of the said employer for a minimum
period of 6 months.
Public Liability Insurance Policy is a statutory insurance designed
to cover third party liability claims for Industrial and
Non-Industrial entities protecting against liability arising out of
accidents at manufacturing premises, storage premises, hotels,
restaurants, clubs, auditoriums, residences, offices, shops,
hospitals, educational institutions, exhibitions, stadiums, pandals,
film studios, circus, zoo etc.
Product Liability Insurance Policy covers third party liability
claims arising out of accidents from use of products defined as any
tangible asset after it has left the custody or control of the
Insured, which has been manufactured (or in some cases
sold/supplied) by the Insured. For the purpose of this Policy,
Products are categorized under Domestic or Exports, on account of
differential risk exposure
Professional Indemnity Insurance Policy Covers professional errors
and omissions on the part of the Insured, which lead to a loss
suffered by the Insured’s clients, who can then bring on a
compensation claim against him. It is also known as the Errors and
Omissions (E&O) Policy and can be issued to both professional
individuals and organizations in different categories