Page 24 - Insurance Times January 2018 Sample

to legal costs but to any damages which might be
awarded against him. The organization will now of
course be precluded from indemnifying him.(b) The
second part of the cover (D&O) will now respond,
provided that the Director/Officer has not acted in a
deliberately dishonest manner. Fines and other
penalties are not recoverable. As in the case of other
liability insurance policies, the D&O policy is subject to
compulsory excess and certain exclusions. Besides, the
policy provides for Directors and Officers to comply with
certain specified claim conditions. Many coverage are
provided under the policy as Add-on extensions.

Liability Insurance, Dram Shop Liability
Insurance:
Possible consequences: Civil Action: May involve personal A form of insurance contract that protects the owners of
liability for: (a) Damages (b) Claimant's Costs (c) Costs of an establishment in which alcoholic beverages are sold
Personal Legal Representation. Criminal Action: prosecution against liability arising out of accidents caused by intoxicated
may be brought under various Statutes. Whilst fines and customers who have been served or sold the alcoholic
penalties under Criminal Actions are not insurable, Directors beverages.
and Officers may face substantial costs in arranging legal
representation to defend such actions. These legal costs are Liability Insurance, Employers:
covered by the D & O insurance provided the defence is
successful. Insurance against loss to claims for damages by employees
for bodily injuries (including death), excludes liability under
workmen's compensation laws.
Liability Insurance, Directors and Officers
Liability Insurance: Liability Insurance, Farm Liability:

The Directors and Officers of companies may become liable This is a specially designed property liability package policy.
to pay damages for wrongful acts such as failure of The coverage applies to liability arising out of farming
supervision of the affairs of the Company etc. Directors and activities including products liability. Limited pollution cover
Officers liability policy is therefore designed to provide for discharge of smoke or chemicals used in normal farming
protection to Directors and Officers of a Company against operations can be added. Employers' Liability Coverage for
their personal liability for financial losses arising out of farm workers can also be added.
wrongful acts or omissions in their capacity as directors or
officers. Liability Insurance, Global Coverage Policy:
Large business groups which operate in many countries have
The coverage is granted in two parts under the insuring special insurance problems. They may have to arrange local
clause: insurance as per local laws. Nevertheless, the group head
(i) Company Reimbursement: Insurance of the office may arrange a "Global Legal Liability Policy" to cover
Organization itself - Organization is entitled (and often any gaps in local insurance cove rages or on an "excess of
obliged) by way of its articles of association to indemnify loss" basis to take care of large losses.
its Directors and Officers. However, the extent of this
indemnity is strictly limited under the Companies act. Liability Insurance Hotel Owners:
The organization may only reimburse to the extent of Policy covers legal liability of Hotel owners for: (a) Accidental
legal costs expended and then only if the Director/
bodily injury (including death) of any visitor or guest including
Officer successfully defends that action.
while using facilities such as Health clubs, Beauty parlors,
(ii) Directors and Officers: (a) Insurance of the Director/ Hair dressers Shops, Swimming Pools (life guard provided or
Officer - if the action against him is successful, then the not), Sports (indoor-Table Tennis, Squash, Bowling, etc.),
Director/Officer is "on his own". He is exposed not only (outdoor: Boating, Deep Sea Diving etc, Skiing, Hang

24 The Insurance Times, January 2018

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