What should the insured do if an event is threatened or must be cancelled?
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Notify the insurer as soon as possible.
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What should the insured do if an event is threatened or must be cancelled?
Notify the insurer as soon as possible.
What is Contingency Insurance designed to cover?
Financial exposures such as contractual liabilities, lost revenues, and ticket refunds due to event cancellations.
Who does the insurer appoint to handle claims?
Loss adjusters.
What serious financial consequences can event organizers face?
Costs from contractual obligations, ticket refunds, and lost revenues due to event cancellations.
What can loss adjusters recommend to mitigate the impact of a cancelled event?
Ways to mitigate financial and reputation impact, such as rescheduling the event.
What are some scenarios that could lead to event cancellations?
Car accidents involving performers, hazardous venue conditions, and natural disasters like earthquakes or floods.
What information is the insured required to provide to the insurer?
As much information as possible about the incident and its financial implications.
What types of risks could cause an event to be cancelled or abandoned?
Venue damage, natural perils, disease outbreaks, public transportation disruptions, national mourning, and terrorism.
What optional coverage enhancements can be added to liability insurance?
Contractual pollution liabilities, first-party business interruption, pollution losses from transported cargo, and pollution losses from third-party waste disposal facilities.
What can result in professionals being sued for negligence?
Inaccurate advice, delays, or not taking the correct action.
Why might Liability Insurance be insufficient for event organizers?
It often does not cover financial exposures like lost revenues and ticket refunds.
What is the purpose of Professional Indemnity Insurance?
To protect professionals against claims arising from negligence, omission, or error in their professional duties.
What is the purpose of Terrorism Liability Insurance?
To protect organizations against negligence related to acts of terrorism.
What does E&O Insurance indemnify the insured against?
Legal liability to pay damages and claimants’ costs arising from neglect, errors, or omissions.
What information do insurers require for underwriting Contingency Insurance?
Details about the proposer, event type, venue, coverage sought, history of non-appearance, and necessary licenses.
What are some standard exclusions in Professional Indemnity Insurance policies?
Claims that should fall under Public Liability Insurance, Products Liability Insurance, libel and slander, and loss of money or securities due to employee dishonesty.
Who can benefit from Professional Indemnity Insurance?
Professionals such as accountants, architects, dentists, doctors, engineers, lawyers, surgeons, insurance brokers, and financial advisers.
What does a Terrorism Liability Insurance policy cover?
Liability for third-party bodily injury, property damage, and removal of debris resulting from acts of terrorism.
What are the two bases on which a Commercial General Insurance policy may be offered?
Claims Made Basis or Occurrence Basis.
What is Bailees Liability Insurance?
Insurance purchased by businesses that have custody or control of personal property belonging to someone else.
What is one of the extensions allowed under Professional Indemnity Insurance?
Coverage for libel and slander.
What types of claims does Professional Indemnity Insurance cover?
Claims arising from negligence, omission, error, wrongful acts, misstatements, misleading statements, and breach of duty.
What constitutes a Cyber-attack?
Malicious acts targeting computer information systems, networks, and devices, often resulting in theft, alteration, or destruction of data.
What must the insured do promptly in case of an incident?
Notify the insurer of any and every incident that occurs.
Why would a warehouse need Bailees Liability Insurance?
To cover liability for damage or loss of cargoes and stocks stored for clients.
What does 'Claims Made Basis' mean in the context of Professional Indemnity Insurance?
The insurer will admit a claim made during the insurance period, regardless of when the act of negligence occurred, as long as it is on or after the retroactive date.
What does Section 77 of the Insurance Act 1966 require from insurance broking companies?
They must have a Professional Indemnity Insurance policy in force to indemnify against liabilities arising from their business.
What does Cyber Liability Insurance cover?
Third-party legal liability claims and first-party financial or reputational losses due to cyber-attacks.
What must the insured display according to the Innkeepers Act 1970?
A copy of the Notice stated under Section 3, conspicuously at the reception or main entrance.
What is another name for Bailees Liability Insurance?
Carriers Legal Liability Insurance.
What happens if the insured becomes aware of a fact that may give rise to a claim?
They must give written notice to the insurer during the period of insurance.
What is the purpose of Directors’ & Officers’ (D&O) Liability Insurance?
To indemnify the insured for claims made against them for wrongful acts committed during the policy period.
What types of acts are excluded from coverage under Professional Indemnity Insurance?
Claims arising from willful, dishonest, fraudulent, criminal, or malicious acts or omissions.
What types of incidents are included in Cyber Liability Insurance?
Loss of data, virus transmission, denial of service, network security breaches, privacy breaches, cyber extortion, and intellectual property infringement.
What is one condition for maintaining security in an inn or hotel?
Maintaining proper working order of all locks to bedroom doors.
What must the insured submit to file a claim?
A completed claim form with relevant supporting documents.
What does Bailees Liability Insurance cover?
Losses to clients’ property in the custody of a bailee and litigation costs recovered from the insured.
What types of claims does Directors’ & Officers’ (D&O) Liability Insurance cover?
Claims for wrongful acts committed or allegedly committed by the insured.
What is the scope of cover provided by Professional Indemnity Insurance?
It covers both actual and alleged negligent acts, errors, or omissions.
What are the two bases on which a liability policy can be issued?
Claims Made Basis or Occurrence Basis.
What should be done with valuables deposited by guests?
They should be immediately placed in a safe deposit box, and a receipt issued.
What types of liability does Commercial General Liability Insurance cover under Common Law?
Bodily injury, property damage, personal injury, pollution liability, and advertising injury.
What is typically required for underwriting Bailees Liability Insurance?
Scope of services, standard trading conditions, turnover, claims experience, and storage details.
What is one of the exclusions related to employee actions in Professional Indemnity Insurance?
Loss of money and/or securities due to theft, embezzlement, or fraud by employees.
What is the difference between negligence and wrongful acts in the context of Professional Indemnity Insurance?
Negligence refers to failure in professional duties, while wrongful acts include a broader range of errors, omissions, and breaches of duty.
What types of liability are covered under Contractual Liability?
Employer’s liability, product and services liability, tenant liability, and liquor liability.
What is imposed on each specific liability cover in a liability insurance policy?
A limit of indemnity, subject to an aggregate limit for the policy period.
What may vary from insurer to insurer regarding underwriting?
The details of the information requested.
What are some new risks that arise in insurance?
Environmental changes, legislative changes, and market conditions.
What coverage is provided after the closure of business under Professional Indemnity Insurance?
Coverage for claims made after the business has closed.
What does Section 172A of CA allow companies to do?
Purchase and maintain insurance against liability for its directors or officers.
What additional coverage does this policy provide for medical expenses?
It covers medical expenses incurred due to bodily injury caused by accidents, subject to policy limits.
What types of insurance are discussed under Specialist Liability Risks Insurance?
Environmental Impairment Liability (EIL) Insurance, Terrorism Liability Insurance, and Cyber Liability Insurance.
What is the typical territorial limit for liability insurance policies?
Usually on a worldwide basis.
What does the term 'Infringement of Intellectual Property Rights' refer to in Professional Indemnity Insurance?
Coverage for claims related to the infringement of intellectual property rights.
On what basis is D&O Liability Insurance issued?
Claims Made Basis.
What is retroactive cover in Commercial General Liability Insurance?
Cover extended to a specified number of years before the inception of the policy for injuries or damage not yet claimed.
What are the three categories of pollution or contamination?
Air, Water, and Land (soil and groundwater).
What does the policy provision include regarding legal costs?
It provides for the payment of legal costs and expenses in the defense of a claim.
What is a key factor that can lead to a claim under proposed Contingency Insurance?
Claims history or incidents that could result in financial loss.
What is the typical period of insurance for D&O Liability Insurance?
Usually 12 months.
Who typically purchases liability insurance policies?
Multi-national companies and conglomerates with diversified operations.
What does advertising injury refer to?
Legal liability arising from the content of an advertisement.
What significant liabilities can an organization face due to pollution incidents?
Bodily injury and third-party clean-up costs.
What are the two types of policy limits mentioned?
Costs inclusive and costs exclusive.
What are known circumstances in the context of Contingency Insurance?
The insured’s awareness of any matter or incident that may affect performance and result in a claim.
What is the main difference between D&O Liability Insurance and Professional Indemnity Insurance?
D&O covers individual directors' or officers' liability for wrongful acts in their official capacity, while Professional Indemnity covers liability for breach of professional duty.
What does Innkeeper’s Liability Insurance cover?
The legal liability of the innkeeper for property loss or damage sustained by guests.
What does standard coverage of an EIL insurance policy include?
First-party and third-party remediation costs, third-party bodily injury, property damage, natural resource damages, legal costs, and civil fines.
What happens if a claim exceeds the limit of cover?
The insured is expected to bear part of these costs and expenses.
What is one exclusion related to the insured's behavior in Contingency Insurance?
Lack of care, diligence, or prudent behavior that increases the risk of loss.
What does Libel & Slander Insurance indemnify against?
Liability for damages, claimant’s costs, and the insured’s legal costs related to libel, slander, trademark infringement, and unfair competition.
What is the maximum liability amount for property loss under Section 3 of the Innkeepers Act?
Not exceeding S$500.
What is the limit of liability in a Professional Indemnity Insurance policy?
An aggregate limit for any one period of insurance.
What type of injury is excluded from Contingency Insurance coverage?
Suicide or self-inflicted injury of an insured person.
How is Libel & Slander Insurance typically issued?
As a stand-alone policy or as an extension of a Professional Indemnity policy.
What must be displayed for the limitation of liability to apply under the Innkeepers Act?
A Notice of Section 3 of the Act in plain type in English.
Is there a standard policy form for Professional Indemnity Insurance?
No, the policy wording varies from insurer to insurer and profession to profession.
What happens if there are changes to an insured event without prior approval?
Such changes are excluded from coverage.
What does Errors & Omissions (E&O) Insurance cover?
Liability exposure for persons in vocations with less rigorous standards than professional liability.
What is the declared value limit for goods or property that an innkeeper can refuse for safe custody?
Exceeds S$5,000.
What are the three sections of the D&O Liability Insurance policy?
Side A: Directors’ & Officers’ Cover, Side B: The Company Reimbursement Cover, Side C: The Entity Cover for Securities Claims and/or Employment Practice Claims.
What are some key elements included in the policy wording?
How claims are dealt with, need for legal opinions, insurer's payment limits, counter-claims, and third-party proceedings.
How does adverse weather affect coverage under Contingency Insurance?
Adverse weather is excluded unless agreed by the insurers in writing.
Who typically requires Errors & Omissions (E&O) Insurance?
Persons with E&O liability exposure, such as council members of management committees.
Under what circumstances does the limitation of liability not apply to innkeepers?
If loss or damage is due to the innkeeper's wilful act, or if goods are deposited for safe custody.
What does Side A of the D&O Liability Insurance cover?
It pays for losses of individual directors or officers not indemnified by the company for claims made against them during the policy period.
What underwriting information is typically required?
Amount of indemnity, type of services, number of practitioners, territorial area, fees, claims history, and professional qualifications.
What is excluded if the insured fails to comply with applicable laws?
Coverage for any resulting loss is excluded.
What type of insurance is Innkeepers Liability often issued as an extension to?
Public Liability Insurance policy.
What is the purpose of Side B in the D&O Liability Insurance?
It reimburses the company for losses granted to directors or officers as indemnification for claims made against them during the policy period.
What is the usual period of insurance for a Professional Indemnity Insurance policy?
12 months.
What is the implication of a communicable disease under Contingency Insurance?
It is excluded unless it directly causes cancellation or interruption of an insured event.
What does Side C of the D&O Liability Insurance provide?
Legal liability protection for the company for employment-related and/or securities-related claims.
What was reported about global insurers regarding the coronavirus outbreak?
They may face significant financial losses if events like the Summer Olympics are canceled.
What is included in the term 'wrongful act' under D&O Liability Insurance?
Any actual or alleged negligent act, error, omission, misstatement, misleading statement, neglect, or breach of duty by the director or officer.
Who qualifies as an insured person under the D&O Liability Insurance?
Past, present, or future directors, secretaries, officers of the corporation, or any natural person deemed to be a director or officer by law.
What does Section 172 of the Companies Act 1967 state regarding indemnification?
Provisions exempting directors or officers from liability for negligence or breach of duty are void, and companies may not indemnify against such liabilities except as permitted under Sections 172A or 172B.
What does Section 172B of the Companies Act allow?
It allows a company to indemnify a director or officer against liability incurred to third parties, with certain exceptions.
What liabilities cannot be indemnified under Section 172(B)(1)(a)?
Payment of fines in criminal proceedings, penalties for regulatory non-compliance, defending criminal proceedings where convicted, and defending civil proceedings brought by the company.
