At Aon Global, we have a dedicated team specialising in Liability Insurance, as we are committed to provide our customers with the best possible coverage for a wide range of liability risks that they are exposed to, in the course of their business.

Liability insurance is designed to offer specific protection to our clients against any third party claims. Broadly, liability products can be categorized into the following:

1. Financial Lines - This includes Directors & Officers Liability Insurance, Public Offering and Security Insurance, Errors & Omissions Insurance (also known as Professional Indemnity), Commercial Crime (this is not an exhaustive list).
    

2. Casualty - This includes Public liability, Product liability, Commercial General Liability (this is not an exhaustive list).

 A) FINANCIAL LINES -

• DIRECTORS AND OFFICERS LIABILITY INSURANCE:

Why insure?

With the advent of globalization, business environment in the country is changing rapidly. Shareholders, employees, regulatory bodies and consumers are becoming aggressively assertive of their perceived rights to influence corporate decisions and business strategies. Thus, being a Director or Officer of a company these days brings with it, not only the stress and strain of making business decisions; but also exposure to enormous potential legal liability. Directors and Officers (D&O) Insurance covers personal liability of the Director or officer, in the event of a claim against them, alleging a wrongful act in their day to day activities in a managerial or supervisory role in the organization. The D&O policy normally covers all past, present and future Directors and Officers of the Company and its subsidiaries (present as well as acquired or created during the policy period).

What is covered?

• Loss resulting from any covered claim brought against the Directors and Officers.

• Defence costs incurred, with prior written consent of the Insurance Company.

• PUBLIC OFFERING AND SECURITY INSURANCE:

Why insure?

The capital market in India is witnessing a consistent boom as a result of which more and more companies are in the process of raising funds through IPO or secondary offerings. Public Offering and Security Insurance (POSI) policy is designed to protect companies and their directors and officers from liabilities associated with such offerings. POSI is a policy which is designed specifically for the transaction and therefore ensures suitable coverage and can be customized to provide coverage for upto 3 years.

What is covered?

• Liabilities arising out of prospectus / listing.

• Liabilities relating to prior negotiations, discussions and decisions in connection with the offering.

• Losses arising from securities claims.

• Defence costs are payable in advance of final resolution.

• ERRORS AND OMISSIONS INSURANCE / PROFESSIONAL INDEMNITY INSURANCE:

Why insure?

Any organization providing professional services such as IT / ITES / Architects / Engineers to its clients in return for a fee can be held legally responsible when they commit a negligent act, error or omission leading to substantial legal costs. Therefore, Errors & Omissions (E&O) Insurance is designed to protect companies from legal liabilities arising out of errors, omissions or negligent acts in professional services rendered by them, thereby resulting in financial losses.

What is covered?

• Loss arising out of professional services resulting from any covered claim brought against the Insured.

• Defence costs incurred, with prior written consent of the Insurance Company.

• COMMERCIAL CRIME INSURANCE:

Why insure?

All businesses are potential targets to an array of crime exposures which can threaten the financial stability of an organization. Commercial Crime Insurance is designed to address the risk of employee infidelity thereby protecting the Insured Company against employee theft, fraud, forgery, and other crimes.

What is covered?

• Claims arising out of:

• Computer Fraud

• Theft loss covered on premises or in transit

• Receipt of counterfeit negotiable instruments

• Forgery or Alteration

• Additional coverages available:

• Third party coverage

• Fraud / Dishonesty of Employees

• Investigation costs incurred, with prior written consent of the Insurance Company

B) CASUALTY -

• PUBLIC LIABILITY:

Why insure?

This policy 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 his own business operations.

What is covered?

• Loss arising out of any covered claim brought against the insured.

• Defence costs incurred, with prior written consent of the Insurance Company.

Type of Policies

• Public Liability Non Industrial Risk - For non-manufacturing units such as offices, hotels, cinema houses, hospitals, schools etc.

• Public Liability Industrial Risk - For manufacturing units such as factories, godowns, warehouses, etc.

• Public Liability Insurance Act 1991 - A mandatory policy to be taken by business units handling hazardous substances as per Public Liability Insurance Act, 1991.

• PRODUCT LIABILITY:

Why insure?

This policy 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 products sold by the Insured. For example a claim could be triggered under the policy in the event of bodily injury / property damage to third party as a result of defective packaging of the product sold to him.

What is covered?

• Loss arising out of any covered claim brought against the insured.

• Defence costs incurred, with prior written consent of the Insurance Company.

• COMMERCIAL GENERAL LIABILITY INSURANCE:

Why insure?

Broadly speaking, Commercial General Liability Insurance (CGL) is a combination of Public Liability and Product Liability. It provides comprehensive protection to the Insured by covering third party liabilities. The CGL policy normally covers the Insured company, officials of the Insured in their business capacity and at the request of the Insured, any party who enters into an agreement with the Insured for any purpose of business.

What is covered?

• Claims arising out of:

• Premises and Operations.

• Products and Completed Operations.

• Personal and Advertising Injury.

• Fire Damage.

• Medical Expenses.

• Defence costs incurred, with prior written consent of the Insurance Company.

N.B. This is just a brief note on some of the liability products, meant to give the reader, a general overview on the coverage. We would be glad to provide you with further details and assistance on these topics.