Financial Liability

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Financial Liability Companies are often exposed to legal liabilities arising out of breach of duty of care to the general public and their customers. Directors and officers of a company are exposed to liability from the various decisions taken by them during the performance of their duties. A liability could also arise from a defect in a product manufactured and sold. Specific policies can be taken to cover legal liabilities of companies, directors and officers and other commercial establishments.

Directors’ and Officers’ Liability

  • These policies indemnify the Directors and Officers of a company against legal liability from wrongful acts, such as acts of errors and omissions, misleading statements, breach of law or duty and misuse of power in their capacity as Director or Officer of the company.
  • It covers claims against breach of employment practices and securities claims
  • It provides for coverage against legal costs and award of damages.
  • A D&O policy is normally taken by employers with good Corporate Governance practices.

Product Liability

  • This policy provides an indemnity against claims arising out of accidents caused on account of any defect leading to any injury/damage or pollution from the use of a product.

Professional Indemnity

  • The policy pays for damages resulting from any claim for any actual or alleged error or omission in the performance or failure to perform professional services. The policy is meant to pay for legal 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.
  • This policy is suitable for professionals such as lawyers, doctors, media professionals, consultants and accountants, IT professionals, stock brokers, security agencies, etc.

Product Recall

  • This policy indemnifies the insured against recall expenses arising out of the recall of his product from the distributor from an incident such as an accidental omission in the product, manufacturing, packing, storage and other defects.
  • This policy is particularly relevant to the pharmaceutical, automobile, food and cosmetics industries.