What is Liability Insurance?

UNDERSTANDING LIABILITY INSURANCE By: \VILLAGE Insurance WHAT IT COVERS Liability Insurance is a form of risk financing to cover the insured of fees from lawsuits and related claims. TYPES OF LIABILITY INSURANCE Public Liability Insurance Covers costs of legal fees for you or your business. Example: they sue the theme park In a theme park third party gets injured from one of the rides legal fees incurred are covered by Public Liability Insurance Rate of premium depends on: Type of business • Turnover of employees • Size of business Employer Liability Insurance Covers compensation and legal fees for staff who are injured or fall ill due to your business. Example: Employer Liability Insurance pays for expenses of compensation claim employee claims for cover of their salary an employee respiratory In a textile factory problem and is unable to work | Important Notes: • Employee Liability Insurance does not cover employees that are also family members. • Employers are legally obliged to get this type of insurance for permanent, contract, casual and labour-only subcontractors. Professional Indemnity Insurance Recommended for professionals who are offering their skills or knowledge as a service. Example: 票 Client loses money Professional Indemnity Insurance covers legal fees A business consultant client sues advices a client to after following advice buy some stocks It covers: Breach of contract • Loss of goods or income • Professional negligence • Loss of data or information Libel Director and Officers Liability Insurance (D & 0) Covers legal fees from claims against your company's Directors and Officers. Example: a third party sues because of damages The Director for Marketing released a misleading D & O covers legal fees press release | Important Note: • Only covers Directors and Officers but not the company as an entity. Recent Update: In Hong Kong,, the legislature has introduced a new regime for the disclosure of inside information which gives investors a direct right of action against Direc- tors and Officers for breaches of their disclosure obligations. For more information or quotes on Liability Insurance, visit our website: www.villageinsurancedirect.com