Liability Archives | Odin Insurance Broking

Liability is an inherent risk in the running of any business. Examples include public liability in case any of the company’s actions result in public damage of any kind, employee liability in case of accidents while at work, cyber crime and data theft, etc.

Legal action on perceived transgressions can result in serious lawsuits that can cripple a business. Companies are liable to pay damages if found guilty but even the process is expensive and long-drawn.

Odin brings you a comprehensive package of insurance policies that help protect you against losses arising out of such liabilities and consequences thereof.

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Director & Officer Liability Policy

Running an organization is filled with risks that go beyond the regular running of the business! Wrongful acts by staff, misleading advertising, fraud, sexual harassment, etc, result in lawsuits from employees, vendors, customers, and other stakeholders, that are usually targeted at the directors and senior executives of the company, who are personally held responsible for such wrongdoings, whether alleged or real. The Director & Officer Liability Policy provides defence costs and protects the assets of such sued individuals, thus shielding them from personal loss.

Commercial General Liability Policy

While running a business, owners come across instances where their products or services, or their employees in the course of delivering those products or services, cause some kind of property damage or even injury or fatality to a customer or onlooker. Such loss is directly recoverable from the owners of the business and may even result in legal proceedings. The Commercial General Liability Policy covers business owners from financial losses due to such litigation that may arise out of such events.

Professional Indemnity / Errors & Omissions Policy

The Professional Indemnity/Errors & Omissions Policy offers compensation for losses suffered by a company due to lawsuits against it for acts of negligence or errors and omissions while delivering professional services. Such lawsuits result in various unforeseen expenses including lawyer fees, damages to be paid, arbitration awards, and even negotiated settlements. This policy covers most of these expenses and puts a company back in business despite unfortunate legal setbacks.

Product Recall Policy

Companies that manufacture, or sometimes trade in, products with a long usable life cycle and have a reputation of high quality, occasionally need to recall products that they have earlier sold due to a retrospective understanding of some error in design or production which could potentially make the product malfunction or fail at some point. Such a recall, however, comes at a high cost. The Product Recall Policy covers all such costs including shipping, warehousing, disposal, and restocking.

Commercial Crime Policy

A Commercial Crime Policy insures a company from losses arising out of criminal acts such as fraud, burglary, computer data theft, forgery, embezzlement, and even misrepresentation, by its employees as well as employees of vendors, contractors and sub contractors. All assets of the insured company are covered under this policy, including property, cash, merchandise and bank accounts. Most policies allow up to a 60-day discovery period by which time the losses must be identified and reported, so as to make a valid insurance claim.

Cyber Liability Policy

In today’s world wide web-driven world, cyber attacks are becoming increasingly common. A cyber attack paralyzes your company’s computer and online systems, and since most data and financial operations are online these days, this is effectively a halt on your business till any demands of the hackers are met. A Cyber Liability Policy covers losses caused by any cyber attack on your facility, including expenses towards legal fees and other related expenses.

Venture Capital Policy

A Venture Capital (or V Cap) insurance policy is a custom-tailored policy that serves to protect venture capitalists and private equity firms from the unique risks that they run while investing into other businesses. The policy is a package of multiple separate policies such as management liability, management indemnification, and professional services liability insurance, that safeguards venture capitalists and their promoters from loss of reputation as well as return on investment by mitigating potential losses.

Pollution Legal Liability Policy

The Pollution Legal Liability Insurance Policy is a necessary cover that all industries handling hazardous materials must take. Leaks, or accidental discharge, or escape, of any contaminating material into public spaces, including the atmosphere, water bodies, land, sea or even landfills, that can lead to severe environmental damage, result in expensive lawsuits and fines from various bodies including Government agencies. This policy covers all such costs and ensures continuity of business.

Clinical Trial Policy

Every new vaccine or cure that is being experimented upon in pharmaceutical companies finally needs to come out from the laboratories and be tested upon humans before being certified as being safe for general use. If, unfortunately, the trial causes injury or harm to volunteers taking the trial, it can result in lawsuits and medical expenses that can be very high depending upon the scale of adverse reaction. The Clinical Trial Policy covers the legal liabilities and costs of such unfortunate events.

Public Offering of Securities Insurance (POSI) Policy

Any public offerings, including initial public offerings (IPOs) rights issues and debt offerings, that are made, carry with them risks, especially to the directors and senior executives of the company, and other controlling or selling shareholders. These risks include greater scrutiny by regulators and higher exposure to investigations by regulatory authorities. In such circumstances, the company must consider a Director & Officer Liability Package Policy and strengthen it further with a POSI Policy which offers tailor-made cover to protect directors and other stakeholders from transaction exposure risks.

Kidnap & Ransom Policy

Amongst the increasing threats to medium and large businesses these days is the kidnapping of owners or senior executives for ransom or business-related quid pro quos. The Kidnap & Ransom Policy is specifically created to deal with this risk, and covers all costs that are likely to be incurred in such an event: the ransom itself, investigation costs, costs of negotiators, legal fees thereafter, interest on monies taken on loans to pay the ransom, consequent personal financial losses, medical expenses, et al.

Mergers and Acquisitions Policy

The Mergers and Acquisitions (M&A) Insurance Policy is a package of insurance covers that, put together, protects both sides from unforeseen changes, mitigates risks, and facilitates the closing of the M&A. Until the agreement is finalized, any M&A deal is fraught with worries on both sides with regard to how guarantees will be met, what taxes will apply, and whether any ongoing litigation may impact it. This policy decreases the impacts of these risks and allows the M&A to proceed in a more collaborative environment.

Employee Compensation Policy

The Employee Compensation Act, 1923, provides for the payment of compensation by the employer to employees (or dependents in case of fatal accidents) if they are injured by accidents that occur during the course of their work. The Employee Compensation Policy is designed for companies to insure themselves against unexpected costs arising out of such sudden events that result in injuries or fatalities at the workplace. All companies, contractors and agencies that employ workmen exposed to possible hazards will benefit by this policy.

Trade Credit Policy

A Trade Credit Insurance Policy helps the insured company to protect in full or at least in part the sums of moneys due from customers against bills raised but unpaid due to the customer’s subsequent inability to honour the bill due to whatever reason: plain default, insolvency or bankruptcy. The premium paid is based on the turnover insured for and the percentage of the same agreed upon as compensation in case of non-receipt of payment. By doing so, at least some part of all unpaid bills are paid for by the insurance company.

Liability

Here’s an important set of policies you must consider to protect yourself against liability risks.

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