In Today’s Competitive Corporate World all businesses have contractual obligations. It is inevitable that companies need to adhere to the compliance requirements of their clients. In that regard they have to buy a few Insurance policies which will help them and their clients if there were to be a litigation or disagreement over the execution of the project.
The following policies are the important Contractual Liability Insurances:
Workmen Compensation
It covers Worksite accidents leading to death or disability of any organization’s direct employees and contract employees. They can add medical expenses cover also in the policy. Manufacturing companies and service-oriented companies who send their technical team for installation of machinery or appliances need to carry this employer’s liability insurance to work on the client site. Many multinational companies ask their vendors or sub-contractors to have this policy mandatorily. draftsight 2019 activation crack
Professional Indemnity or Technology Errors & Omission Policy
Negligence in offering services which leads to a financial loss to the client gets covered under this insurance. Employee Dishonesty and Loss of Documents are key covers in this policy. Vicarious Liability is an important benefit in this Professional Indemnity Insurance as a lapse from the employee is the responsibility of the employer. So, these errors and omissions of an employee leading to a financial loss to the client gets covered under this policy.
Commercial General Liability
Third party bodily injury or property damage happening in the insured business premises or due to their business operations are covered in this insurance. Employees deputed in a client place whose negligent act causes damage to a fixed asset or bodily injury are also covered. All man power consulting companies who place their employees in various client offices need to buy this General liability policy as a contractual obligation.
Automobile Liability
US and European clients ask their Indian vendors to buy this policy as it is taken separately in the international markets. But this cover can be added as a rider in the Commercial General Liability policy as Non-Owned & Hired Auto Liability cover.
Cyber Crime Liability
Cyber-insurance is an insurance product used to protect businesses and individual users from Internet-based risks, and more generally from risks relating to information technology infrastructure and activities. Coverage provided by cyber-insurance policies may include first-party coverage against losses such as data destruction, extortion, theft, hacking, and denial of service attacks; liability coverage indemnifying companies for losses to others caused by a cyber hack of the insured systems where their clients hold the insured legally responsible.
These are the covers which safeguard any business operations from potential legal issues and will suffice the contractual requirements of their client also.
