Page 117 - RISK Management IC86 Ebook

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b) Money for out of court settlements, compensations,
verdicts or fines,

c) Legal expenses &
d) Financial loss as a result of loss of reputation or market

share.

Personnel loss exposures

n Personnel losses are caused by death, disability, retirement,
resignation or unemployment. When such perils strike, two
main effects are measurable in terms of money viz.:
l Loss of the value of the person's services,
l Any extra expenses caused by that loss.

Examples of the first category include the following

a) Loss of profits to a promoter when because of sickness or
death of a popular artist, a series of events have to be cancelled,

b) Loss of future earnings for an organization when
several technocrats resign to start their own company,

c) Loss of future income if the plane carrying a group of leading
salespersons, crashes,

d) Loss of income to a family when the only earning member is
laid off, etc.

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