A business can face liability because of what it does, supplies, advises, employs, designs, installs or agrees to in a contract. The right solution depends on the activity, the potential claimant, the type of loss and the wording of the contract and policy.
Liability insurance should therefore be reviewed as part of the business operation — not as a standard limit added to a general policy.
Injury or property damage suffered by third parties in connection with the business.
Liability arising from products manufactured, supplied, sold or distributed.
Financial consequences where a product or service fails to perform its intended function, subject to policy wording.
Claims arising from professional advice, design or services.
Personal liability exposures faced by directors and officers in the management of an organisation.
Selected response costs and liabilities arising from cyber incidents or personal-information breaches, subject to the policy.
Liability exposures to employees that fall outside the scope of COID, subject to policy terms.
Liability accepted or altered by contract and the insurance consequences of indemnities, waivers and hold-harmless clauses.
Some liability policies respond on a claims-made basis. Circumstances and claims may need to be notified within specific periods. Clients should not wait for a formal demand before speaking to their broker if they become aware of a possible claim.