Liability Insurance

Comprehensive General Liability insurance (CGL)

Comprehensive General Liability insurance (CGL) is commonly acquired by contractors who undertake contract of works or service in industries like oil and gas, telecommunication, power plants, engineering, IT etc. as part of the contract requirements. A contractor must produce a CGL policy to the principal before the commencement of works. The CGL insurance indemnifies you against your legal liability for property damages or bodily injuries to a third (3rd) party caused by an accident while carrying out the works. In addition, the policy will indemnify you to a defined limit for defence costs and expenses incurred in respect of a claim.

Public Liability insurance

Public Liability insurance is considered essential in businesses which involve regular interactions between the members of the public and the company such as retail businesses, restaurants, clinics and many more. The Public Liability insurance covers your legal liability to a third (3rd) party as a result of an accident happening in connection with your business operations. The insurance indemnifies you against all sums which you become legally liable for damages and claimant’s costs and expenses in respect of:

• Bodily injuries including illnesses to any person
• Losses or damages to property
• Legal expenses incurred in your legal proceeding defence

Public Liability 

Product Liability cases have greatly increased over the recent years, especially in more litigious parts of the world like the USA, Canada, Australia and Europe. Whether you’re a manufacturer, a vendor, a supplier or an exporter, you are exposed to the risk of product liability claims. In fact, any point in the chain of commerce is exposed to this risk. Here are some reasons why you need Product Liability insurance.

• Defects in the design, manufacture, packaging or labelling of the product can result in injury to the user or damage to his or her property. Other factors causing or contributing to the defect can also surface in the process of storage, transporting and handling of the product. Any one of these causes can be a valid reason for the consumer to file a liability claim against the exporter.
• The damage or injury may not even be caused by a defect in the product and yet the consumer may still file a claim against the exporter seeking payment for damages for alleged or imagined defects.
• From the mere fact that the product is available for use or consumption by the public a possibility for product liability claim exists, perhaps from a dissatisfied customer.
• You might believe your products are flawless. In some jurisdictions, even the deliberate misuse of a product can be a basis for liability claims regardless whether or not the product was used properly and for its intended purpose.

Product Liability insurance indemnifies the insured for sums which you become legally liable to pay as damages for bodily injury or property damage to third party arising out of the defective products. In addition, the policy will indemnify you for defence costs and expenses incurred in respect of a claim to which the policy applies. The limit of indemnity is inclusive of defence cost and expenses incurred in respect of a claim to which the policy applies.

SME Directors and Officers Liability insurance

SME Directors and Officers Liability insurance is designed to help protect a wide range of small to medium sized companies. It is available to profitable companies who have been in business for more than two (2) years with annual turnover of up to RM 100 million. Directors and Officers Liability insurance is just as relevant to the SMEs, as to the large national or multi-national organizations.

This policy protects the personal assets of the directors and officers by providing indemnity for losses arising from claims as a result of ‘wrongful acts’ like breach of duty, neglect, error or misstatement committed by them in the course of performing their duties in their capacity as directors and officers of their companies.

Employer’s Liability insurance  

The Employer’s Liability insurance covers you as an employer for your legal liability under the Common Law to pay compensation, cost and expenses to your employees in respect of accidental bodily injury or disease arising out of or during the course of employment. The insurance also covers related costs such as claimants’ legal fees and the costs of defence. As an employer, you can be held liable for:

• Personal negligence
• Failure to provide a safe place and a safe system of work
• Failure to exercise reasonable care in the recruitment of competent staff
• Failure to provide proper machinery and maintain them in good working order

Error and Omissions for Management Corporation

Error and Omissions for Management Corporation insurance provides protection for insured in the event of losses arising from claims for any wrongful acts committed within the coverage territory after the retroactive date. The losses shall mean the amounts which the insured is legally liable to pay in respect of settlements, awards for damage or costs, and legal costs and expenses.

Can be extended to cover:

• The entity as well as the natural persons
• Lawful spouse
• Legal representatives, heirs, assigns or estates

Directors and Officers Liability insurance is designed to protect directors and officers of companies against personal liability that they might incur in respect of amounts which they are liable for, in respect of claims made against them arising out of the performance of their duties.

Coverage:

• Civil damages and settlement costs
• Any claim made against the directors and officers
• Can be extended to cover past, present & future directors and officers of holding companies, subsidiary companies, outside directorships, lawful spouse, estates, heirs or legal representatives, Employment Practices Liability (non-entity), additional notification of 45 days and advance payment of defense cost