Liability
- June 26, 2024
- Posted by: [email protected]
- Categories:
LIABILITY
In the course of business dealings, there is always a possibility of an honest error in judgement, a miscommunicated message, or a misconstrued or n act that leaves the company and its staff open to legal liabilities and claims being made against them. Liability insurance policies are designed to protec such likelihoods.
PUBLIC LIABILITY
Public Liability Insurance is a very highly recommended policy for businesses with their own premise and more than average traffic of visitors. This insurance covers liability to third parties due to your company’s negligence in terms of losses or damages to property or bodily injury suffered while on the premise.
COMPREHENSIVE GENERAL LIABILITY
Similar to the Public Liability policy, the Comprehensive General Liability policy indemnifies the insured against any liability to third parties for property damages or bodily injuries suffered not just on premise but also as a result of the insured’s performance of their contract work. In addition, this policy will also pay for the legal costs and expenses incurred in defence of the insured. This policy’s coverage can be further extended to include other liabilities such as contractual liability, etc if so required.
DIRECTORS’ & OFFICERS’ LIABILITY
Director’s and Officer’s Liability insurance offers a measure of protection against any liabilities to the directors’ and officers’ arising from the directors’ and officers’ actions and words. Section 140(1) of The Malaysia Companies Act, 1965 prohibits a company from indemnifying their director’s and officers’ accused of wrongful acts until proven innocent. In the meantime, they’ll have to bear their own legal costs and expenses. This insurance will cover these costs and expenses and help protect the directors’ and officers’ personal assets.
EMPLOYERS' LIABILITY
This policy indemnifies employers against any legal liability to pay any compensation, cost and expenses to their employees who are not protected by The Workmen’s Compensation Acts or SOCSO, in the event of accidental bodily injury or disease arising during the course of their employment. This policy covers all incidences arising from the insured’s and its employees’ negligence.
PRODUCT LIABILITY
The Product Liability insurance indemnifies manufacturers and distributors against legal liabilities arising from the malfunction of their products. This policy coverage can also be extended to cover the cost of recalling the product from the market. In the event of a product failure, in addition to the cost of compensating the consumer for any damages and resultant damages, the costs incurred to recall said products could also be a costly exercise to the manufacturer.
PROFESSIONAL INDEMNITY
The Professional Indemnity (or Errors & Ommissions) insurance will indemnify the insured against any legal liability arising from any negligent act performed or wrongful advise given by their employees while acting on behalf of the company in their official capacity. This policy coverage includes defence costs, and damages/ settlements imposed by the courts.
MEDICAL MALPRACTICE INSURANCE FOR MEDICAL ESTABLISHMENTS
This insurance indemnifies medical establishments, be they private healthcare clinics or hospitals, against any legal liabilities arising from wrongful practices resulting in property damage, bodily injury, and medical expenses including the cost of defending the insured against such claims. Medical Professionals will need to purchase their own malpractice insurance.