Public Liability Insurance

---

Public Liability Insurance Act, 1991 requires compulsory public liability insurance for institutions handling hazardous substances to make available minimum relief to victims of accidents, other than employees.
There are types of Public Liability insurance policies – Industrial and Non-Industrial Risks.

Industrial Risk Policy

Cover the risks arising in manufacturing premises including godown, warehouses etc., forming part thereof.

Non-Industrial Risks Policy

Comprise of risks arising out of the following establishments:

• Hotels, Motels, Club Houses, Restaurants etc.
• Cinema Halls, Auditoriums, and similar public places.
• Residential premises.
• Schools, Educational Institutions, Libraries.
• Exhibitions, Fairs, stadia.
• Amusement parks.
• Film studios.
• Depots, Tank farms, Warehouses, Godowns, Shops, similar other non-industrial risks.

Scope Of Coverage

The coverage under the Insurance includes.

Legal liabilities

Other than liabilities under the Public Liability Insurance Act or any other law

Compensation including the claimant's costs, fees, and expenses.

Abhivridhi Tip

Business dealing with hazardous substances per the Public Liability Act, 1991, needs a mandatory Public Liability Insurance.

Commercial General Liability (CGL) Insurance

---

CGL Insurance is designed for business organisations to protect them against liability claims for bodily injury (BI) and property damage (PD) arising out of premises, operations, products, and completed operations; and advertising and personal injury (PI) liability.
Comprehensive General Liability provides complete protection against:

• Bodily injury and Property Damage
• Personal and Advertising injury
• Medical Expenses
• Supplementary Payment

Scope Of Coverage

---

• Premises Liability
• Operations Liability
• Products Liability
• Completed Operations Liability
• Duty to Defend Form
• Coverage for defence costs apart from damages

Employee's Compensation (EC) Insurance

---

Previously known as Workmen Compensation (WC), Employee Compensation Insurance covers liability that might be imposed on an Employer on account of a fatality or grievous injury to the employee during employment. Employee's Compensation Insurance provides legal liability coverage for such compensation to the employees in case of personal injury by accident or disease arising from out of and in the course of employment.

Who needs Employee Compensation Insurance?

An employer who falls within the below categories needs an Employee Compensation Insurance

Whether as a principal or contractor, engaging "workmen" as defined in the Employee's Compensation Act.

Or Employer of employees who does not qualify as "workmen" but share an employee-employer relationship.

Scope Of Coverage

---

• Death.
• Permanent total disablement,
• Permanent partial disablement,
• Temporary disablement and
• Legal costs and expenses incurred with the company's consent.

Abhivridhi Tip

Consider taking an Employee compensation policy with additional covers for Medical Expenses, Occupational Disease and Contractors workers/employees.

Professional indemnity (PI)/ Errors and Omissions (E&O) Insurance

---

According to an established discipline, anyone who provides a skilful character's advice or services is a 'Professional. Professional liability arises from a failure to use the degree of skill expected from a person in a particular field. As per Law, professionals are required to perform the services they were hired under the contract terms.
A wrongful act is established by determining whether a prudent person while exercising ordinary care, would have foreseen the injury or damage that would have naturally or probably resulted from his conduct. A professional's violation of duty towards a client can result in a contract action, a tort action, or both.

Scope Of Coverage

---

• Any civil suit, action, proceeding or demand by any person or entity seeking to hold the insured responsible for monetary damages because of a wrongful act actually or allegedly committed by the insured.
• Judgments awarded against the insured or settlements negotiated with the approval of the Insurer.
• Legal fees incurred in the investigation, adjustment, defence, or appeal of a claim.

Abhivridhi Tip

Consider taking Add on Covers when you prefer Errors and Omissions Insurance.

Employee Dishonesty cover.

IPR Infringement liability cover.

Directors & Officers Insurance

---

Directors & Officers can be sued personally by any stakeholder for a decision taken by them on behalf of the company in their managerial capacity. The D&O Insurance covers two aspects.
Side A- Legal Liability Brought out on Directors and officers of the company.
Side-B- Company Reimbursements.

Risk exposures to Director and Officers

Shareholders:

Direct and Class actions on their behalf

Employees:

for labour-related issues such as: a. Sexual Harassment
b. Wrongful Termination / Promotion
c. Discrimination
d. Failure to promote.
e. Breach of employment contract

Third Parties

a. Competitors (Interference, etc.)
b. Customers
c. Government (banking law violations, civil rights issues, etc.) or Regulators
d. Creditors

Scope Of Coverage

---

DD&O Insurance provides indemnity to Directors and Officers for:

• Legal and defence costs.
• Damages judgements and settlements arising from claims brought Damages, judgements and settlements arising from claims brought against Directors, due to wrongful acts in their capacity as Director or Officer of a company.

It becomes a legal liability to pay compensation to a third-party regarding loss resulting from any Wrongful Act committed by Directors and Officers in their capacity as a Director and Officer (including claimant's costs, fees, and expenses) under the Law of the country.

Abhivridhi Tip:

Considering Add on Covers / Extensions when preferring Directors & Officers Insurance for the following is a wise choice.

Cover for Subsidiaries, Acquiring a new company or Merger.

Outside Directorship coverage

Cover for Retired Directors

Cyber Liability Insurance

---

Rising digitalisation of businesses due to Cloud, Mobile, Social Media and IoT, thus, expanding the threat surface. Evolving threat landscape, with the recent ransomware/malware attacks, targeting even the SMB sector, Increasing awareness on cybersecurity Apprehensions around implications of GDPR.
Cyber Risk can be any risk emerging from the use of information and communication technology (ICT) that compromises data or services' confidentiality, availability, or integrity. The impairment of operational technology (OT) eventually leads to business disruption, (critical) infrastructure breakdown and physical damage to humans and property.
Cyber risk is either caused naturally or is human-made, where the latter can emerge from human failure, cyber criminality (e.g., extortion, fraud), cyberwar, and cyber-terrorism. It is characterised by interdependencies, potential extreme events, high uncertainty concerning data and modelling approach, and risk of change.

Scope Of Coverage

---

Covers liability for monetary damages sustained by a person arising from the actual or potential unauthorised access to that Entities information leading to

• Online Business Income Loss
• Cyber Extortion Expense
• E-Vandalism Expense
• Violation of Privacy Notification Expense
• Covers unauthorised access by employees.