General Liability Insurance
The purpose of the general liability insurance is to cover bodily injury, property damage, and the resulting financial consequences caused to third parties.
This policy covers civil liability arising from business operations, regardless of whether professional negligence or error is involved.
For a situation to generate compensable civil liability, several elements must be present:
- Damage must be caused to a third party.
- The damage must be proven and attributable to the responsible party.
- The loss must be financially quantifiable
The general liability insurance meets this need by indemnifying third parties for damages caused by the insured.
Example: During a client presentation, part of a suspended ceiling collapses and injures a guest. General Liability covers the bodily injury compensation.
Most Common Coverages:
- Operations Liability
- Employer’s Liability
- Premises Liability
- Tenant’s Liability
- Completed Operations Liability
- Product Liability
- Cross Liability
- Contingent Liability for Subcontractors
- Sudden & Accidental Pollution Liability
- Fitting Room Liability
- Care, Custody & Control Liability
- Product Recall
Professional Civil Liability
The purpose of professional civil liability insurance is to guarantee the financial consequences arising from any claim, in accordance with current legislation, brought against the insured during the policy period for personal injury, material damage and their consequential losses.
It also covers primary financial losses caused to third parties by a professional error or omission committed by the insured or by their staff, for whom they are legally responsible, in the performance of the duties and functions assigned by virtue of their position or as employees in the service of the policyholder identified in the specific conditions of the policy.
We can distinguish between two types of professions:
In NON-TECHNICAL professions, such as lawyers, administrative agents, court representatives, etc., its purpose is primarily to cover financial losses (primary financial losses) arising from errors, omissions or negligence in the performance of the professional activity.
Example: A tax return is incorrectly filed, a deadline to appeal before a court is missed, software is improperly developed for a client, etc.
In TECHNICAL professions, such as architects, engineers, etc., in addition to financial losses, personal injury, material damage and the consequential losses arising from them are also covered.
Example: An engineer improperly designs a bridge that later collapses, causing injury or property damage.
Most Common Coverages:
- Professional Liability
- Legal Defense
- Bail Bonds
- Damage to Files and Documents
- Office Operations Liability
- Employer’s Liability
- Defamation and Libel Claims
- Data Protection Liability
- Professional Disqualification
- Employee Dishonesty
- Adverse Publicity Expenses
- Intellectual Property
- Loss of Electronic Records
- Completed Operations Liability
Directors & Officers Liability (D&O)
Claims brought against the insured, arising from negligent management acts committed or allegedly committed by the insured solely in the performance of their duties, are covered under Directors and Officers (D&O) liability insurance.
In other words, this insurance covers claims that any director or officer may have to face with their personal assets.
There are currently numerous products available on the market. At GRUPO PACC, we are able to include the company itself as an insured party under the policy.
Most common covers:
- Civil Liability of the Company’s Directors and Officers
- Reimbursement to the Company
- Defence costs
- Entity cover for Securities Claims
- Unlimited retroactive cover
- Unlimited run-off cover for retired directors (legally 4 years in Spain; however, if the company operates abroad, for example in Germany, it is 12 years)
- Full bonds, arrangement and/or costs of arranging civil and criminal bonds (depending on whether the insured wishes the insurer to post the bond or prefers the insurer to cover the costs of arranging it through a bank).
- Liability of the DPO (Data Protection Officer) included as an insured under the D&O policy.
- Worldwide territorial scope excluding USA and Canada. In addition, worldwide scope may also be considered.
- Professional disqualification
- Administrative fines
- Employment practice liability claims
- Subsidiary tax liability
- Insolvency liability
- New subsidiaries
- Emergency expenses
- Advertising, reputation restoration or public relations expenses
- Expenses arising from pollution claims
- Expenses arising from extradition proceedings
- Crisis management expenses
- Corporate criminal liability
