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Our new Liability Protect provides any combination of Employers’ Liability, Public Liability and Products Liability. It’s based on many months of research and analysis and here are 6 reasons to recommend it to your clients.
Firstly, we’ve introduced broader coverage as standard such as worldwide Policy Territory, a more generous approach to Canadian Products Liabilities, wider Legionella cover and we now include damage to property being worked upon or to be worked upon under the insured’s care, custody and control.
Secondly, we’ve injected greater clarity throughout Liability Protect: transparent cover indexing, clearer cover for damage caused by mixing or blending of the insureds products, explicit cover for Joint Venture liabilities and specific cover for contractual products liabilities implied at law.
Three. A new Multinational Addendum provides clients with valuable coverage options for their Public and Products Liability multinational exposures. With flexible master policy options, strong North American coverage and a provision for Joint Ventures, Liability Protect is highly suitable for multinational businesses.
Four. Liability Protect comes with a rich array of Loss Control services. From on-site industrial disease and accident investigation workshops, to online Health and Safety and product safety training programmes to full blown Risk Consulting services, all designed to keep our clients’ businesses and their people safer.
Five. Liability Protect goes beyond the scope of conventional liability insurance by including cover to protect your clients’ reputations after a Crisis, Environmental Clean Up costs, Product Recall costs, no-fault personal accident cover for employees and an option to cover clients’ third party liabilities caused by a cyber-event.
Six. All our policies are backed by an award winning liability claims team and a commitment to proactive case management and rehabilitation. With a strong customer feedback culture, we continually assess and refine the service we provide.
Liability Protect is suitable for businesses of all sizes in all sectors and to learn more have a look through this app. Thanks for listening.
We’ve broadened coverage in several areas of Liability Protect based on our analysis of market liability wordings and feedback from our valued brokers and clients. Here are some of them:
Traditional Public and Products Liability policies often exclude certain territories such as the USA unless they were specifically requested. Now Liability Protect provides the reassurance and convenience of worldwide territorial coverage, unless a country or region is excluded. This is especially appropriate for multinational clients who require a global offering.
Canadian Legal Costs
The usual market standard for Products Liability is for all North American legal costs to be included within the policy limits. Liability Protect goes much further than this and any legal defence costs for Canada claims are covered in addition to the policy limits and so the insured’s cover (for instance an exporter to Canada) is not eroded.
Unlike many liability policies, Liability Protect doesn’t approach Legionella as gradually occurring pollution that’s either excluded or written on a claims-made basis. Liability Protect extends cover as standard on an occurrence trigger, not just for buildings owned by the insured but buildings leased, rented and temporarily occupied as well.
Care, Custody and Control
Damage to property of the customer that the insured is working on, or is in their trust to work upon, is typically excluded by liability policies. Liability Protect provides, as standard, a £100,000 limit of cover for property in the insureds’ care, custody and control – which will be particularly attractive to manufacturing or engineering clients.
Tailored to need
Optional extensions integrated into the wording allow Liability Protect to provide even wider coverage tailored around the needs of clients. These include: Asbestos Accidental Discovery, Products Financial Loss and USA & Canada Time Element Pollution Extension.
CLARITY AND TRANSPARENCY
We’ve made the coverage in Liability Protect as clear and as self-evident as we can throughout the policy. Here are some examples:
Mixing and Blending
This remains an area of potential concern for many in the aftermath of the Bacardi -Thomas Hardy case. Whilst AIG has not sought to rely on this case, Liability Protect now provides clarification of damage following the mixing or blending of the Insured’s defective product with a customer’s product offering peace of mind to food, drinks and cosmetic manufacturers and their brokers.
Liability cover for the insureds’ Joint Ventures is often requested by brokers and clients and is typically added by many insurance carriers by endorsement or via a manuscript wording. Liability Protect however includes the cover automatically “as standard” and is another instance of Liability Protect’s outstanding suitability for multinational customers.
Contractual Products Liabilities
We’ve found that many liability wordings are not explicit about whether they cover contractual liabilities implied by law under the Sales and Supply of Goods Act. Liability Protect is clear that we cover our insureds contractual liabilities for products they’ve supplied in line with consumer regulations.
Liability Protect structure
In response to broker feedback Liability Protect has a much clearer and more accessible structure. It has a modular cover framework, these modules are clearly indexed for ease of navigation and the coverage sections have been moved to the beginning of the policy for ease of reference for clients and brokers.
Liability Protect provides clients with valuable coverage options for their Public and Products Liability multinational exposures and it can also function as a master policy for multinational liability programmes.
Difference in conditions and limits
Liability Protect can also function as a master public and products liability policy, stepping in to ensure consistent multinational coverage across the client’s multinational programme whenever the agreed programme limits are higher or its coverages broader than those provided under the client’s local policies.
Liability Protect includes a specific Financial Interest clause. This ensures that when it is functioning as a master policy, we have a mechanism in place to make payments to the insured after a local loss, in cases where direct payments to specific jurisdictions are not prohibited for legal/regulatory reasons.
Sometimes when claims payments to a policyholder have to be paid to a different territory for regulatory reasons, additional tax may apply in that territory. Liability Protect as a master policy provides sub-limited cover for the additional amount necessary to offset these additional taxes.
Liability Protect can provide multinational policyholders’ operations with additional cover for the Insured’s Residual Employers’ Liability exposures that may exist as well as Excess Liability cover to protect the policyholder’s overseas Employers’ Liability and Motor exposures.
CLIENT RISK SOLUTIONS
Liability Protect comes with access to AIG’s Client Risk Solutions. Our policyholders can benefit from risk management solutions to make their workers and businesses safer, and prevent adverse events from happening in the first place. Using data driven insights, Client Risk Solutions combines expert knowledge with the latest technology to deliver innovative safety solutions.
eLearning Health and Safety training system
Liability Protect policyholders have complimentary access to a comprehensive Health and Safety eLearning system for their staff. An extensive range of courses (including industry specific and foreign language modules) backed by candidate testing and management information provides an end-to-end process for clients to ensure and to demonstrate health and safety compliance.
Liability Risk Consulting
Liability Protect policyholders have access to tailored advisory services from our expert consultants throughout the UK. From developing and reviewing safety programmes, employee and management training to best practice assessments, our consultants develop programmes specific to our clients’ needs including customised videos, web based training and in-house intranet services to improve client safety.
Accident and Disease workshops
Occurring on a regular basis, Liability Protect clients have the option to attend Accident and Disease workshops run by our in-house teams. Covering a range of topics, these workshops provide clients with greater insight into how workplace accident and diseases occur and how to manage cases and claims from notification through to settlement. Workshop content is usually suitable for line managers, human resource representatives and health and safety managers.
Product Liability Service
Liability Protect product liability policyholders receive complimentary access to the AIG Product Liability Service. This powerful web-based risk management tool for companies involved in manufacturing, servicing or distributing products has a series of online tutorials including training courses to build employee competence and a tool-kit to assist with audits and risk assessments.
Our Liability Protect customers can rely on the skill and expertise of our dedicated award winning liability claims team, recognised throughout the insurance industry.
Award winning claims expertise
Our casualty Claims teams have secured several industry awards and nominations for our service, professionalism and innovation. The strong and continuous investments we make in our claims handlers is evidenced by own in-house Chartered Insurance Institute accredited professional training programme. This is supported our award winning deployment of tablet technology to improve the speed of our handlers’ on-site accident investigation, communications and decision making.
Dedicated claims service
With over 100 liability claims staff throughout the UK our dedicated claims teams are organised to make sure we assign the right claims handlers, with the right expertise in exactly the kind of liability claim our customers are facing. Our claims handlers work in close partnership with our clients, to proactively case manage individuals injured or made sick at work – often deploying the proven rehabilitation techniques pioneered by AIG in the UK.
Client education and loss prevention
Our liability claims team continues to invest in identifying future trends and educating our clients about the risks they are likely to face. For instance we routinely run workshops on occupational disease for our clients and brokers across the UK, looking at areas such as noise induced hearing loss, mesothelioma, hand arm vibration syndrome, common causes, costs and strategies to help prevent incidents from occurring in the first place.
Listening to customers and continuous improvement
Our liability claims managers have regular conversations with our clients about our claims performance (including our communication, decision making, technical ability and service). This feedback goes straight back to our claims and underwriting teams to identify trends and necessary changes. As a result of this, the number of customers entirely satisfied with their liability claims service is improving all the time, from 71% in 2013 to over 90% today.
BEYOND LIABILITY INSURANCE
Liability Protect goes beyond conventional liability insurance with a host of innovative and differentiated covers and services - protecting your clients and helping business acquisition and retention.
Liability Protect includes increased automatic cover up to £150,000 for professional PR consultancy services to help businesses communicate clearly, consistently and professionally in a crisis. Crisis Containment is triggered by any event covered by Liability Protect that can create bad publicity for the business or that has the potential for have a negative financial impact.
Environmental Clean-Up (included in Public Liability module*)
Liability Protect automatically includes an increased £2m limit of cover for clean-up costs of sudden and accidental pollution incidents for operational and new conditions. Cover has been extended beyond the UK to all EU member states and includes statutory debts for instance where emergency clean-up has been conducted by the local regulators.
* Not available for fuel stations, chemical, waste disposal, mining and construction activities
Product Recall (included in Product Liability module*)
Liability Protect also includes £50,000 of cover for product recall costs such as recall notices, transport, storage, product replacement and recall consultancy fees. Cover is triggered by the discovery of a dangerous product defect, a government recall or a malicious product tampering incident.
* Not available for chemical manufacturers, pharmaceuticals, transportation manufacturers, and manufacturers of veterinary products
Employment Related Accident payments:
Benefits: Sum Insured
Permanent Total Disablement from any occupation £25,000
Permanent Loss of Limb, Loss of Sight or Loss of Hearing £25,000
Loss of one eye, one hand or foot, or loss of speech £12,500
Full thickness Burns over more than 27% of the body £5,000
Complete loss of all fingers on one hand or loss of toes on one foot £2,500
Cyber Liability (optional module*)
The impact of unauthorised access or use of a company’s computer system can be far reaching and impact customers in many different ways. Liability Protect’s optional Cyber Liability module is intended for businesses with annual revenues of up to £100 million and provides cover for: Defence Costs & Data Protection Fines in connection with a Regulatory Investigation; Cyber Legal Liability in respect of a Breach of Confidential Information or a Security Failure.
* Not available for Financial Institutions, Medical, Call Centres, Telemarketing, Data Processing (outsourcers), Internet Service Providers, Telecommunications, Gambling, Bookmaking and Casinos
UK domiciled businesses
All sizes from one-man limited companies to PLCs
Businesses in all industrial sectors
Legal Costs in addition to limit of indemnity
Criminal Legal Expenses £5m aggregate limit in addition to limit of indemnity
TUPE given as standard
Wide definition of employee
Medical and Vocational Rehabilitation at no extra premium cost
Health and Safety loss control
eLearning RoSPA accredited health and safety training
Serious Accident Response Service
Employment Related Accident Benefits
included as standard when Employers' Liability purchased)
£5m aggregate legal costs in respect to Corporate Manslaughter in addition to the limit of indemnity
Wide cover as standard, including:
Blanket vendors liability
Member to member liability
Advice, design service and specification cover provided if resulting in injury or damage
Products unknowingly sold to the US included
Additional cover included depending on module purchased:
Product Recall: £50,000 limit for government recall, product defect or malicious product tampering
(included with Products Liability)
Environmental Clean Up Costs: £2,000,000 limit
(included with Public Liability)
Crisis Containment: up to £150,000 for professional crisis communications expertise
(included with Employers' Liability or Public/Products Liability)
Our liability claims teams’ proactivity and relentless customer focus delivers an outstanding claims service. Here are a few examples based on actual events (with any identifying details changed).
High-pressure work related action
A multi-million pound employer’s liability claim from a high salaried employee alleged that the employer’s excessive hours triggered chronic fatigue syndrome curtailing his career with the company. Our claims team worked proactively to review thousands of the claimant’s emails, revealing other external contributory factors and a history of short tenures with previous employers that enabled us to negotiate a much reduced package for the employee’s personal injury and termination of employment contract with the policyholder.
Work related sporting liability
A senior company employee suffers catastrophic spinal injuries from an accident during a company sponsored bike race. Recognising the dreadful personal tragedy and the impact on our client’s organisation where the injured employee was very highly regarded, our claims team worked very quickly to ensure that a seven figure contribution towards a larger settlement pot was paid within months of the claim being made.
Rapid post-accident payments
Our liability client’s employee suffered severe hand injury on a machine at work. AIG moved quickly and made an immediate payment to the company of £10,000 (regardless of liability) under the Employment Related Accident Benefit section of their Public Liability policy. The client used the money towards the costs of Health and Safety improvements which was a strong factor in the company’s mitigation to the HSE when they were considering fining and prosecuting the company.
HSE and criminal investigation
Our policyholder managed hospitals’ water systems and was investigated by the HSE, with no with apparent right of reply, for allowing faulty chemical levels into the water with potentially fatal consequences. Our claims team proactively arranged legal representation, approached the coroner to give our insured full access to all evidence and demonstrated that our client’s management did not contribute to the faulty chemical levels. All investigations and potential civil actions against the company were dropped.
Overseas public liability
A fire in our multinational client’s overseas storage plant in Spain, spread to neighbouring properties, and our client faced damages claims in the Spanish courts. A cross border partnership between AIG claims handlers in two countries argued that our client had not been negligent and that fault lay with the manufacturer of defective equipment that had caused the fire. The judge agreed that there was no culpability on our insured’s part.
Food manufacturer product recall
The discovery of toxin lectin in red kidney beans required the withdrawal of frozen bean burgers. Our client arranged for advertising in ten national papers as well as notifying the Food Standards Agency (“FSA”) who issued their own food alert. AIG paid the full limit to the insured for their claim which included scrapped stock, press & advertising cost, external lab work and storage and removal costs.
A contractor working on a client’s building fell through the roof and unfortunately passed away. As a result of this terrible accident our policyholder received a number of media inquiries which had the potential to damage their relationship with the local community and their organisation’s reputation. AIG arranged for experienced PR consultants to help manage the incident and assist with crisis communications.
Flexibility is the name of the game with our new Liability Protect coverage: flexibility in the scope and nature of the coverage, as well as the types of clients it suits. Because of its pick and mix structure, it’s as useful for a one-man limited company serving a small local area as it is for a large multinational operating across continents.
Clients choose any combination of Employers’ Liability, Public Liability and Products Liability that meets their needs. Replacing our previous Comprehensive Liability product, the new Product Liability release offers broader coverage as standard, plus a lot of optional extras that suit particular situations, such as product recall cover.
Looking at the broader standard coverage first, there are quite a few noteworthy features. For example, Liability Protect covers damage to property in the insureds’ care, custody and control, up to £100,000. This is usually excluded from liability policies, and its inclusion here provides peace of mind for insured companies and their clients.
Worldwide jurisdiction is another improvement in this version of Liability Protect. Certain territories, like the United States, are often excluded from traditional public and products liability policies. But Liability Protect offers worldwide territorial coverage, unless a country or region is excluded. This is particularly relevant to multinational clients.
It’s worth spending a little more time on multinationals now, because Liability Protect is a great fit for companies that operate across borders. For example, it can function as a master public and products liability policy, providing consistent multinational coverage for a client. This ability to serve as a master policy can really simplify coverage and claims payments – and potentially their tax liability.
This joined-up approach, with our teams working together across borders, is a real advantage for our clients. Here’s a case study from our archives to show how it can help. A fire broke out in a storage plant in Spain that belonged to one of our multinational clients. The fire spread to neighbouring properties, and our client faced damages claims in the Spanish courts.
Our claims handlers in the UK worked together with their Spanish counterparts to make the case for our client, arguing that the fault lay with the manufacturer of defective equipment, not our client. The judge agreed and our insured was in the clear.
What helped in that real-life example was not just our ability to work across borders. The skill and expertise of our claims handlers was also a significant factor. Our claims teams have won awards for service, professionalism, and innovation, and we’re committed to continuous improvement, based on listening to our clients
In fact, Liability Protect produces a lot of positive activity – away from losses and claims. The product comes with a powerful range of loss control services, aimed at making insured businesses safer. We offer policyholders free access to comprehensive health and safety e-learning training, casualty risk consulting, accident and disease workshops, and web-based risk management tutorials. All of these services can help prevent losses, which ultimately is better for everyone.
So what about those optional extras I mentioned earlier? One of them, Crisis Containment, protects the reputation of policy holders, covering professional PR advice up to £150,000. Another covers environment clean-up, after sudden and accidental pollution. There’s also cyber coverage, covering third-party liabilities caused by a cyber event, and no-fault employment-related accident benefits, paid immediately after employees are injured at work.
Here’s a real-life example related to that last point. An employee at a company we insured injured his hand on a machine at work. We made an immediate payment of £10,000 under their public liability policy. This was used for health and safety improvements, which was a strong factor in the company’s mitigation to the Health and Safety Executive, when they were considering fining and prosecuting the company.
Finally, a word about the structure of Liability Protect. We listened to our clients and brokers and have worked hard to make it clearer and more transparent. The modular cover framework is now clearly indexed. There’s clearer cover for damage caused by mixing or blending of the insureds’ products, explicit cover for joint venture liabilities, and specific cover for contractual products liabilities implied at law.
In short, we believe this new version of Liability Protect offers broad, flexible, convenient coverage that reflects the needs of the market.