Test Notes PDF

Describe the benefits and perils covered by employment practices liability insurance. This is a form of D&O insurance, specifically covering risks relating to employment practices. It indemnifies the company and directors against the liabilities for the legal costs and subsequent awards for defendi...

Describe the benefits and perils covered by employment practices liability insurance. This is a form of D&O insurance, specifically covering risks relating to employment practices. It indemnifies the company and directors against the liabilities for the legal costs and subsequent awards for defending employment-related claims. The perils include defending against, and possible settlement costs of, the following: \- unfair dismissal of an employee \- constructive dismissal of an employee \- discrimination against an employee, for example resulting in being overlooked for a promotion or paid less for doing an equivalent job \- failure to correctly follow misconduct procedures when dismissing an employee Describe the benefits provided by Directors' and Officers' liability insurance. The insured is indemnified against the legal liability to compensate third parties owing to any wrongful act of the insured in their capacity as a director or officer of a company. Cover is personal to the director or officer, but is usually bought by the company. Usually written on a claim-made basis. Describe the benefits covered by environmental liability insurance. The insured is indemnified against the legal liability to compensate third parties due to bodily injury, death or property damage resulting from unintentional pollution (gradual or sudden) for which the insured is deemed responsible. The costs of cleaning up the pollution and regulatory fines may also be covered. Describe the benefits covered by environmental liability insurance. The insured is indemnified against the legal liability to compensate third parties due to bodily injury, death or property damage resulting from unintentional pollution (gradual or sudden) for which the insured is deemed responsible. The costs of cleaning up the pollution and regulatory fines may also be covered. Describe the cover under public liability insurance. The insured is indemnified against legal liability for the death of or bodily injury to a third party or for damage to property belonging to a third party, other than those liabilities covered by other liability insurance. Describe the benefits and perils covered by professional indemnity insurance. Give an example of a type of professional indemnity cover. The insured indemnified against legal liability resulting from negligence in the provision of a service. An example is medical malpractice insurance. The perils depend on the profession of the insured. Examples include wrong medical diagnosis, error in medical operation, error in an actuarial report or incorrect advice from a solicitor. State what is covered under marine and aviation liability insurance. The insurance is indemnified against the legal liability to compensate a third party for bodily injury, death or property damage arising out of the operation of the vessel or aircraft. The third parties include passengers. State what is covered under motor third-party liability insurance. The insurance indemnifies the owner of a motor vehicle against compensation payable to third parties for personal injury or property damage. The benefits will include compensation for loss of earnings, care costs, hospital costs and property damage costs. In most countries such cover is compulsory. The cover provided may or may not be limited to that required by legislation.