Page 26 - Insurance Times January 2018 Sample

against the insured being one which results from (a) an Liability Insurance, Products and Completed
accident for which legal liability would in the normal course Operations Liability, CGL:
of vessel operations be covered by any protection and The liability exposure of the manufacturer whose
indemnity policy for the vessel owner or operator, or (b) A
contract into which the insured entered, within the scope malfunctioning products may cause injury or property
of the insured services believing that the insured was acting damage or of the contractors whose failed structure or
projects may do the same. Coverage of the exposure is a
as the principal's agent only.
feature of the commercial general liability policy. The
insurance does not in any constitute a guarantee of either
Fines and Duties:
the insured's product or work. Contrast with "Premises and
This too is an extension if opted for.
Operations liability."
Rating:
Liability Insurance, Products Guarantee
(a) Gross Freight Receipts (GFR), (b) The number of containers
handled (in terms of 20 TEU). The rate shall depend on (i) Limit Insurance Policy:
of liability for cargo and TP Liability (ii) Extensions Opted (iii) The product guarantee policy is designed to protect the
Deductibles (iv) Past claims experience (v) Nature of cargo insured against legal liability arising out of failure of products
handled (vi) Destination of Cargo e.g., the % of cargo normally to fulfill their intended function. The policy will pay for (i)
dealt with towards USA/South America/Eastern Europe/Africa The cost of repairing or replacing a defective product, (ii)
etc. (vii) Quality of Management. The cost of recalling defective products (iii) The financial
losses caused by such products where there is no injury to
Liability Insurance, Nuclear Energy Liability or damage to property of third parties. Extension is available
Insurance: to pay for insured's lost sales as a result of damage to the
brand name of the product, advertising expenses already
Usually provided by various pools formed by insurers. Two
incurred, advertising expenses to re-launch the product etc.
types of overage available (i) The facility form for operators
for nuclear facilities and the suppliers. (ii) Transporters' forms Liability Insurance, Products Liability:
for those that provide services, material etc., for such
facilities or transport property to and from a facility. The Product liability Insurance provides an indemnity to the
coverage is restricted to liability arising out of nuclear manufacturers or distributors and/or components is respect
accidents. Thus, these also need CGL policy. of their liability for accidental damage or injury resulting
from defects in their products Product liability Insurance also
Liability Insurance, Personal: provides an indemnity to manufacturers and others against
third party claims for personal injury or damage to property
The Policy for individuals in respect of legal liability arising
out of their own negligence or the negligence of their family which arise from the purchase or use of product. Ordinary
members. These policies are known as "Personal Policies". public liability policies concern themselves, in the main with
accidents occurring on specified premises. Product liability
Liability Insurance, Pollution Coverage: Insurance policies deal with the liability that may arise
wherever the claims arising from the utilization of the
The practice varies among insurers. Some incorporate a
covered product manufactured, sold, handled, or distributed
general exception in the Public Liability policy, others
by the insured or other trading under his name if the
consider each risk separately and decide to cover or exclude
pollution liability. accident occurs after possession has been relinquished to
other and away from premises owned, rented, or controlled
Liability Insurance, Product Recall Insurance: by the insured.
The policy indemnifies the insured for recall expenditure
incurred by insured. The cover includes costs such as Liability Insurance, Professional Malpractice:
customer notification, shipping costs and disposal costs. The liability of a professional for errors or omissions in the
Coverage generally applies to the firm itself though pursuit or his profession.
additional coverage can be purchased to cover the costs of
third parties. This policy is usually purchased by Liability Insurance, Property Damage:
manufacturers such as food and beverages, toy, automobile Insurance against loss due to claims for damages because
parts manufacturer and electronics companies. of injury to others property.

26 The Insurance Times, January 2018

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