Running a business generally means providing a product or a service to customers. Many times, there can be damage caused accidentally to customer/public/other third party(wherein you are the first party and the insurer is the second party) for which you, as a business are liable. This is where Liability insurance comes in.
Liability policies cover all sums which the Insured is legally liable for such as:
- Damages in consequence of accidental death or bodily injury or disease to Third Parties
- loss of or damage to Third Party property arising out of any defect in the products manufactured and covered under the Policy after such products have left the Insured’s premises
arising out of accidents occurring in the insured premises and other than your named premises wherever insured conducts his business / operations.
General third-party liability
A commercial general liability plan covers a range of liabilities faced by a business. The major protections available are against bodily injury (includes mental ailments resulting from physical injury), damage to property, advertising injury (liabilities arising from the insured advertising his goods or services such as libel, invasion of privacy, copyright infringement, and so on) and legal liability for the insured business because of a personal injury to a third party (such as charges of harassment and discrimination). Based on your needs, Perilwise will package Product Liability insurance and/or Public Liability insurance in order to ensure that your business gets the best cover. The products your business manufactures could be defective and cause injury or damage to a client or end customer who purchases your product.
If your business provides any professional service, this one is a must. Also, known as an errors and omissions (E&O) policy, such a plan provides insurance against third-party legal liability arising out of errors and omissions or negligence while rendering a service. The most commonly covered professionals include engineers, architects, chartered accountants, lawyers, interior decorators and management consultants.
Of course, errors are not restricted to humans alone. Machines can falter as well. Since modern businesses are highly dependant on machines, it is advisable to have an information and network technology E&O cover for your business.
Fraud Control/Fidelity Guarantee Insurance
A fidelity guarantee insurance policy insures against any direct monetary loss to the insured business due to an act of 'duplicity' (meaning deception) or 'fraud' by an employee of the organisation while at work. Policies can be taken in the name of one specific individual, for example the company accountant, or you also have the option of taking a collective policy for the entire staff.
Another must is a fidelity cover for a select group that is based on designations, say, a policy to cover all managers, store keepers, accountants and cashiers.
Carrier legal Liability Policy:
This policy pays all sums for which you shall become legally liable as compensation for
- Physical loss
- Destruction of goods
- Damage to goods or merchandise while in transit, including during loading or unloading
- While temporarily housed on or off vehicles in the ordinary course of transit.
Essentially, This policy covers your legal liability(as licensed goods carrier) for actual physical loss of or damage to goods or merchandise transported in the vehicle, provided that fire or explosion or accident has arisen on account of
- Your negligence or negligence or criminal acts of Your servants and
- The vehicle is damaged by such fire or explosion or accident, and a claim for the same is admitted under the Motor policy covering the vehicle.
The cover commences from the time of loading of the vehicle with cargo at the point of origin and expire after the delivery of cargo at the final destination or lapse of 3 days from arrival of the vehicle at the final destination whichever is earlier.
Cyber Security Policy:
This policy covers liability or loss due to data breaches, payment gateway flaws or deliberate cyber and data fraud and other cyber security breaches. It’s a cover contractually required of many IT firms and the like by their clients. This insurance is recognized by investors, external agencies and international companies, helping you meet contractual requirements.
There are two components to this cover-. First party and third party. First party covers losses that you incur such as damage control losses or audit costs. Third party refers to losses incurred by your customers or vendors. This includes data theft of your clients. This policy covers you for claims whenever they occur(even years later), provided the loss incident happened in the policy period.
The cover and risks vary by industry. E-commerce firms are vulnerable because they have access to payment and transaction data. Sites that store personal information, such as user name, passwords, contact details, etc. are at risk of having data stolen. Even transaction data of websites is at risk. Perilwise factors in these factors.
Product Liability insurance is very important if you have a manufacturing unit.
The most at risk products are those that are generally used, touched or consumed. If you have a business which manufactures food products, toys and so on make sure to avail product liability insurance. There is also a protection against liability claimed by third party due to business or its employees' negligence.