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CORPORATE INSURANCE

Liability Insurance

Today, business transaction & its structure has taken many complex ways on its occurrence and formation. Therefore, every Company is surrounded by legal liabilities & consequential penalties in respect to every business decision, transaction, execution, internal/external policies that they make. These legal liabilities may occur from their commercial operations, from the product that they make, from their own employees or from their customers.

In past decades itself, corporate world has gone through many below realistic events where companies had legal liabilities to fight for:
1. Legal liabilities faced by Directors of Satyam Computer Services when their financial scam unfolded
2. Legal liabilities faced by major German car manufacturer admitting cheating emission tests in US
3. Legal liabilities arisen from selling the unsafe product by pharmaceutical company in U.S which resulted in side effects not directed to consumers by seller.
4. Legal liabilities faced by celebrities whenever product and/or company endorsed by them, went into major litigations
5. Damage to Delhi’s Le meridian guest car while parking assistance provided by hotel Valet driver.

Thus, liability insurance in its various forms, helps business promoters, management, directors, independent professional to safeguard themselves from financial losses that may incur due to legal liabilities arising while commencing their operations or services. Different types of liability Insurances are as follows.
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Commercial General/Public/Third Party Liability Insurance

This insurance basically covers legal liabilities from third party property damage/bodily injury or death/ financial loss/advertising injuries resulting directly/indirectly from insured business operation or insured business premises.
What are the key features?
  1. All legal cost such as lawyer fees, bail bond expenses, defense cost etc
  2. Investigation cost
  3. Media & advertisement expenses
  4. Expenses to be incurred as compensation as directed by court of law such as medical expenses, covering financial expenses of victim
What are the additional coverages offered?
  1. Worldwide coverage
  2. Vendors liability
  3. Product liability
  4. Sudden or accidental pollution liability
  5. Damage to premise rent to insured
  6. Product completed operations hazard
  7. Personal and advertising injury
  8. Transportation liabilities
  9. Oral and written contractual liabilities
  10. Damages due to Act of God perils
  11. Lift, elevator, escalator liability
  12. Food & beverage liability
  13. Public relation cost
  14. Crises communication cost
  15. Interest on full amount of judgement
What are the general exclusions?
  1. Intended damages to third party
  2. Damage to own property and/or product
  3. Liabilities under workmen compensation act
  4. Professional liability to customer
  5. Aircraft, auto, watercraft
  6. Contractual liability
  7. Employment practice related liability
  8. War or alike circumstances

Product Liability Insurance

This insurance basically covers legal liabilities from third party property damage/bodily injury or death/ financial loss resulting directly/indirectly from defect in product sold/manufactured/supplied by insured.
What are the key features?
  1. All legal cost such as lawyer fees, bail bond expenses, defense cost etc
  2. Investigation cost
  3. Media & advertisement expenses
  4. Expenses to be incurred as compensation as directed by court of law such as medical expenses, covering financial expenses of victim
What are the additional coverages offered?
  1. Worldwide coverage
  2. Product recall expenses
  3. Product guarantee
  4. Vendors liability
  5. Technical collaborators Liability
  6. Sudden or accidental pollution liability
  7. Damage to premise rent to insured
  8. Product completed operations hazard
  9. Personal and advertising i
  10. Food & beverage liability
  11. Public relation cost
  12. Crises communication cost
  13. Interest on full amount of judgement
What are the general exclusions?
  1. Loss of market goodwill
  2. Deliberate or wilful or intentional non compliance of any statutory  provisions
  3. Pure financial loss
  4. Fines, penalties, punitive or exemplary damages
  5. Consequence of war, invasion, act of foreign enemy or alike circumstances
  6. Nuclear or radioactive contamination
  7. Contractual liability

Director & Officer Liability Insurance

This insurance basically covers financial loss of directors or officers of company resulting from a legal action brought towards them due to alleged wrongful act/decision/ error/ negligence done by them at their professional capacity.
From where can such liability come from?

Although, it could be any one from where these liability may come from however some of the possible sources are:

  1. Share holder, Promoters, Investors
  2. Lendors, Creditors
  3. Customers
  4. Public/Government/Statutory Authorities
  5. Employee or employee family
  6. Competitor
What are the key features?
  1. All legal cost such as lawyer fees, bail bond expenses, defense cost etc
  2. Investigation cost
  3. Media & advertisement expenses
  4. Expenses to be incurred as compensation as directed by court of law such as medical expenses, covering financial expenses of victim
What are the additional coverages offered?
  1. Worldwide coverage
  2. Employment practice related litigation
  3. Corporate manslaughter
  4. Automatic cover new acquisition or merged companies
  5. Outside entity director
  6. Run off cover outside entity officers
  7. Asset & liberty cost
  8. Spouse, legal heir representative cost
  9. Extradition cost
  10. BI/PD Carveback for corporate manslaughter & OH & Safety
  11. Control group clause
  12. Counselling extension
  13. Lifetime discovery period
  14. FCPA & UK Bribery act endorsement
  15. Insured v/s Insured claim
  16. Final adjudication clause
  17. Kidnap response cover
  18. Pecuniar penalties where insurable by law
  19. Pension trustee
  20. Regulatory crises response cost
  21. Severability and non imputation of knowledge
  22. Spouse legal liability
  23. Tax Liability endorsement
  24. Whistleblower claims for retaliation
  25. Public Relation cost
  26. Crises communication cost
  27. Interest on full amount of judgement
What are the general exclusions?
  1. Loss of market goodwill
  2. Deliberate or wilful or intentional non compliance of any statutory  provisions
  3. Fraud & dishonesty
  4. Prior litigations, demands or judgement
  5. Coverage under professional indemnity insurance
  6. Fines, penalties, punitive damages

Professional Indemnity/Error & Omission Linked Insurance (EDLI)

This insurance is basically more suitable for professional service & consultancy providers wherein this insurance safeguards them against their financial loss arising due to legal liability caused from actual or alleged error, omission or negligence in professional service rendered or which should have rendered by insured.
What are the key features?
  1. All legal cost such as Lawyer fees, bail bond expenses, defense cost etc
  2. Investigation cost
  3. Media & advertisement expenses
  4. Expenses to be incurred as compensation as directed by court of law such as medical expenses, covering financial expenses of victim
What are the additional coverages offered?
  1. Worldwide coverage
  2.  Asset & liberty cost
  3. Extradition cost
  4. Counselling extension
  5. Final adjudication clause
  6. Severability and non imputation of knowledge
  7. Public Relation cost
  8. Crises communication cost
  9. Unintentional breach of confidential information
  10. Infringement of IPR, copyrights, patents or trademarks
  11. Interest on full amount of judgement
  12. Notification extension clause
  13. Cross Liability
  14. Spouse, estates, legal representatives
  15. Subsidiaries & managed organizations
  16. Unintentional libel & slander clause
  17. Loss of documents
  18. Contractor/subcontractor liability
  19. Fraud & dishonesty of employees
What are the general exclusions?
  1. Loss of market goodwill
  2. Deliberate or wilful or intentional non compliance of any statutory  provisions
  3. Fraud & dishonesty
  4. Prior litigations, demands or judgement
  5. Criminal acts
  6. Punitive or exemplary damages
  7. Nuclear & radioactive perils
  8. Political risk
  9. Sanctions limitations & exclusion clause

Cyber Risk Liability Insurance

This insurance basically compensates insured own & third partly liability including financial loss occurring out of cyber associated exposures with e-business, internet, networks and information assets.
What are the key features?

Self loss/liability

  1. E-theft loss as a consequence of having transferred funds or property value or given value due to fraudulent input of data into computer system or through network into computer system
  2. E-communication loss due to a customer having transferred funds or property value or given value on the faith of any fraudulent communication for which insured are held liable
  3. E-threat loss including cost of a professional negotiator and any payment/fund made or property surrender as intended extortion payment
  4. E-vandalism loss including one’s intended by insured employee
  5. E-business interruption including extra expenses
  6. Privacy notification expenses including cost of credit monitoring services or similar services for affected customers
  7. Crises expenses including public relation cost

Third party loss/liability

  1. Disclosure liability/ including customer claims due to system security failures resulting in unauthorised access to or dissemination of private/confidential information on internet
  2. Content liability
  3. Infringement of IPR, Copy rights, trademark etc
  4. Reputational liability
  5. Alleged disparagement of products & services
  6. Libel & slander, defamation & invasion of privacy
  7. Conduit liability
  8. Liability arsing system security failures leading  to harm to third party systems
  9. Impaired access liability including claims due to system security failures leading to systems being unavailable to customers
  10. Defense cost
  11. Extradition proceedings
What are the general exclusions?
  1. Loss of market goodwill
  2. Deliberate or wilful or intentional non compliance of any statutory  provisions
  3. Full severability
  4. Fraudulent or wilful violation of any such law or regulation
  5. Bodily injury, sickness, disease, death of any person or damage to any tangible property
  6. Mechanical failure, gradual, deterioration, electric disturbance, media failure, malfunction or breakdown

Commercial Crime Insurance

Losses due to business crime is reality today which may be done either by employee or a third party. Commercial Crime insurance compensates insured against their financial & property loss due to act of crime committed against insured by employee or third party. This will include fraud/dishonest cover by employee or a third party including criminal act done through web/internet/cyber activities.
What are the key features?

Financial loss and/or Property loss or damage and/or Legal liabilities  due to below circumstances:-

  1. Loss of money security or other property by theft or forgery or dishonest  by employee.
  2. Losses from destruction, disappearance, wrongful abstraction, or computer theft, or money or securities from insured premises
  3. Losses from destruction, disappearance, wrongful abstraction, or money or securities outside insured premises by a third party
  4. Losses from instruments such as cheques fraudulently withdrawn on the insured accounts by a third party
  5. Computer fraud such as fraudulent electronic fund transfer
  6. Reconstitution cost if cause of loss is under IT criminal act
  7. Additional cost such as rent for temporary replacement of any equipment or premises or office, external workforce/employees, transportation of equipment or documents
What are the general exclusions?
  1. War, Civil war, insurrection, rebellion, revolution, military action, terorism
  2. Cost of recovery of information contained in lost documents such as manuscripts, records, accounts etc
  3. Loss of trade secrets
  4. Loss occurred due to employee who was guilty of some fraud previous as well
  5. Business interruption or consequential loss such as loss of potential income
  6. Fines & penalties
  7. Criminal act committed by Shareholder or director
  8. Inventory shortages

Employee Fidelity Guarantee Insurance

This insurance covers financial loss of insured due to act of dishonesty/fraud committed by employee of the insured during period of the policy. However, Loss must be discovered within 12 calendar months of respective employee service end date or policy end date whichever comes first.
What are the key features?

Financial loss due to dishonest/fraud act of employee resulting into:

  1. Loss of money, securities or other asset
  2. Forgery
  3. Embezzlement
  4. Larceny
What are the general exclusions?
  1. More than one claim in respect of any one employee
  2. Loss arising outside india
  3. Inventory losses
  4. Supressions of facts at issuance of policy

Workmen Compensation/Employee Compensation Liability Insurance

This insurance covers all legal liabilities & compensation for which insured is liable under Employee compensation act 1923, the fatal accidents Act, 1855, Common law.
Why do companies need workmen compensation insurance?

In an increasingly working environment, possibility of death or bodily injury to any employee during course of employment cannot be ruled. And since employee rights under law have also moved forward very much in corporate world with better communication thus significant liability will certainly come over employer account under such circumstances.

Therefore it is always important for every employer to cover their such uncertain liability cause they are going to be very significant in quantum when it will come. Also, cost of such insurance solution is also very minimal in comparison to quantum of liability.

What are the key features?

Though policy covers all under liabilities under employee compensation act 1923, the fatal accidents Act, 1855, Common law. However, circumstances are illustrated as below:-

  1. Death
  2. Permanent total disablement
  3. Permanent partial disablement
  4. Leave benefit during loss of salary under medical recovery period
  5. Medical expenses
  6. Payroll employees, contractor/subcontractor employees
What are the general exclusions?
  1. War, nuclear, riot
  2. Employees who are not covered under employee compensation act 1923
  3. Accident under influence of alcohol or such drugs
  4. Any injury which does not result in fatality or partial disablement for period exceeding 3 days
  5. First 3 days of disablement where total disablement is lesser than 28 days

Multi mode transport operator Insurance (MTO)

This is an important & useful insurance solution tool for transport & logistics industry to mitigate their legal liability arising out their transport & logistical business operations.
Who should take Multi mode transport operator(MTO) Insurance?
  1. Multi mode transport operator
  2. Freight forwarder
  3. Haulers
  4. In transit warehousing
  5. Ship agents
  6. Clearing & forwarding agents
  7. Custom house agents
  8. Packing and consolidating agents
What operations does Multi mode transport operator(MTO) Insurance cover?
  1. Air movements
  2. Sea movements
  3. Road movements
  4. Rail movements
  5. Acting as agent for third party NVOC principals
What are the key features?
  1. Physical loss or damage to vessel or equipment owned or operated by a subcontractor or customer.
  2. Physical damage or loss to cargo whilst in custody, care and control of insured or a party who has contracted/sub contracted to provide transport services
  3. Consequential loss and/or business interruption resulting from 1 above.
  4. Unrecoverable cargo’s contribution to general average.
  5. Fines and Duty.
  6. The errors and omissions extension would cover legal liability arising out of the operations of the insured following a negligent act, error or omission by the insured, his agent or subcontractor.
  7. The Third-Party Liability extension would cover physical loss or damage to property, bodily death or injury or illness and legally recoverable consequential loss arising out of the operations of the insured
What are the general exclusions?
  1. Insured or its contractor/subcontractor own wilful, dishonest, fraud, deliberate negligence act of conduct
  2. Illegal trade such as contraband
  3. Contractual liability
  4. Liquidated, punitive or exemplary damages
  5. Mysterious disappearance or unexplained loss or shortages
  6. Hijack of cargo during rail or road transportation
  7. Infringement of copyrights, trade marks, patent, service mark etc

Carrier Legal Liability Insurance

Carrier legal liability insurance is for entities in Transport & logistic industry which operate their own vehicles, carriers for transportation of cargo. This insurance covers insured legal liabilities arising out of physical damage or loss of cargo while being transported on insured vehicle directly caused by accident and/or fire to vehicle registered under policy .
What are the key features?
  1. Compensation against physical damage/loss of cargo caused directly by Fire/accident of vehicle carrying cargo
  2. Financial loss resulting from lost freight in connection to damaged part of cargo
  3. Carrier legal liability for cargo under Carrier Act 1865
  4. Legal cost incurred in the litigation filed by claimants
  5. Cost of average adjusters
  6. Damage due to indecent handling
  7. Transshipment, emergency storage costs
  8. Damage by flood or water or by other cargo
  9. Insurance is extended during loading/unloading and whilst being monetarily loaded or unloaded during regular course of transit
  10. Loss/damage due to criminal act or negligence of insured’s employees
What are the general exclusions?
  1. Strikes or act of terrorism
  2. Depreciation, delay in delivery, loss of market or any act of confiscation by Public authority
  3. Liability under contract which is not under Carrier act 1865
  4. Damage to insured or insured employees own property
  5. Inherent vice or defect, deterioration, wear and tear, decay or spontaneous combustion of perishable goods is excluded from carrier legal liability insurance coverage.
  6. Any consequential loss arising from the loss or damage to goods.
  7. Any consequence of riots, strikes, war, ionizing radiations
  8. Goods which may be illegal or illicit or smuggled
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ORANGE CAPITALConnect with us
Principal Officer : Deepak.Arora@orangecapital.in
Sales & Support : Deepak.Chauhan@orangecapital.in
Media/ Grievance/Enquiry : Nandita.Kapoor@orangecapital.in
OUR LOCATIONSWhere to find us
Registered Office
Orange Capital Insurance Broking Private Limited,
Ground Floor, S-145, Uppal South End
Sohna Road, Sector-49, Gurugram, Haryana-122001

Corporate Office
Second Floor, K-5A/9, DLF Phase-II,
Near Vatika City Point, MG Road,
Gurugram, Haryana-122008

Branch Office
Office No.354, 3rd Floor,
Block–D&E Chandigarh Citi Centre-CCC,
VIP Road, Zirakpur Punjab-140603
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ORANGE CAPITALConnect with us
Let’s grow together with the warmth of mutual trust and support for a better future.
OUR LOCATIONSWhere to find us
Registered Office
Orange Capital Insurance Broking Private Limited,
Ground Floor, S-145, Uppal South End
Sohna Road, Sector-49, Gurugram, Haryana-122001

Corporate Office
Second Floor, K-5A/9, DLF Phase-II,
Near Vatika City Point, MG Road,
Gurugram, Haryana-122008

Branch Office
Office No.354, 3rd Floor,
Block–D&E Chandigarh Citi Centre-CCC,
VIP Road, Zirakpur Punjab-140603
GET IN TOUCHOrange Capital Social Links
Feel our social presence that seamlessly covers key insurance indicators.

IRDA Registration Number : 704 | CIN : U66000HR2019PTC082383 | Category : Direct Broker (Life & General including Health) | License Period : 17-04-2020 to 16-04-2023

IRDA Registration Number : 704
CIN : U66000HR2019PTC082383
Category : Direct Broker (Life, General, Health)
License Period : 17-04-2020 to 16-04-2023

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