Professional
& Financial Risks
Are highly technical types of insurance. In
recent years the scope of cover and the number
of insurers operating in this market segment,
have narrowed significantly. It is very important
that your broker is a specialist in this market
with the knowledge and experience to negotiate
not only preferential pricing but to make sure
that cover is adequate for your needs. Types
of cover include:
Professional Indemnity:
Covers legal liability to compensate third parties
for loss sustained by them arising out of negligent
acts, errors or omissions or civil liability
on the part of the insured in the conduct of
their business.
Directors
and Officers Liability
A standard policy is in two sections:
Section A - Directors & Officers:
Legal Liability for wrongful acts committed whilst
acting in their capacity as a Director/Officer.
Section B - Company Reimbursement:
Reimbursement of payments that the company is
legally obliged to make in indemnifying company
officers for claims made against them.
Employment
Practices Liability:
Covers a range of liabilities that can face
an employer following wrongful termination,
refusal to employ, failure to promote, demotion,
disciplinary action, sexual harassment, discrimination
or defamation of an employee.
Medical
Malpractice:
Covers insurance against claims that a health
care providers were negligent, had failed to
meet the acceptable standard of care owed to
the patient, and thus had caused injury to the
patient. This covers payments of compensation
to claimants as well as associated legal expenses.
Superannuation
Trustees Liability:
Covers trustees and trust managers of superannuation
funds. Covers fiduciary legal liability to compensate
third parties (including legal costs incurred)
arising out of the negligent administration
of the trust or fund.
Surety
& Performance Bonds:
A surety bond is a contract of guarantee which
has three parties:
-
The surety or guarantee, ie
the Insurance Company.
-
The person who is to perform
the subject matter of the bond, ie the
Contractor.
-
The person in whose favor
the bond is issued, ie the Owner or Obligee.
Under a bond, the
surety undertakes to hold itself responsible
up to the specified amount for the non performance
or malperformance of an expressed obligation,
ie the obligation of the Contractor.
Information
Technology Liability:
Covers technology errors or omissions, technology
media liability and technology broadform public
and products liability.
Cyber
Liability:
Cyber liability coverage can involve both first-party
and third-party losses. First-party losses relate
to the information in computer systems while
third-party losses involve unauthorized use
of or access to a company' s computer network.
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