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we have a request from our client that reads..... As per the terms of a new client agreement, our client is needing to organise insurances for his company What I am seeking (As per therms of my agreement) is as follows, all amounts are AUD: 1. INSURANCE. You must effect and maintain: (A) DURING THE TERM OF THIS AGREEMENT, PUBLIC LIABILITY INSURANCE COVER OF AT LEAST $20 MILLION PER EVENT AND, WHERE THE LAW DOES NOT PROVIDE INDEMNITY AGAINST CLAIMS FOR COMMON LAW DAMAGES BY WORKERS, INSURANCE AGAINST COMMON LAW LIABILITY RELATING TO ALL PERSONS YOU EMPLOY WHO ARE INVOLVED IN PROVIDING THE SERVICES; AND (B) DURING THE TERM OF THIS AGREEMENT AND FOR A PERIOD OF SEVEN (7) YEARS AFTER ITS TERMINATION, PROFESSIONAL INDEMNITY AND FIDELITY INSURANCE COVER OF AT LEAST $10 MILLION IN ANNUAL AGGREGATE, COVERING LIABILITY TO ANZ ARISING FROM A BREACH OF PROFESSIONAL DUTY, WHETHER IN CONTRACT OR OTHERWISE, CAUSED BY ANY NEGLIGENT OR OTHER ACT OR OMISSION OF YOU OR ANY OF YOUR PERSONNEL......... this i s the extent of his query and won der if you are able to assist us.
CCW Global is able to offer a wide range of both Professional Indemnity Insurance and Public Liability Insurance options to businesses in Hong Kong.
Both Public Liability and Professional Indemnity Covers are provided on a tailor made basis, and the policies will vary depending on the industry of the company being covered, the business’ annual revenue, its exposure to the general public, and the services it offers requiring protection.
For example, a Professional Indemnity Insurance product for a Law Firm will be slightly different in the scope of coverage from that which is obtained by an Insurance Brokerage or IT service provider – this is due to the fact that the type of advice being offered by the respective companies will not be exactly the same.
When calculating the premium of a Professional Indemnity Insurance policy the revenue of business being covered will have a major impact on the overall cost of the plan. Furthermore, the number of clients and their respective values to the organization can have a part to play in calculating the expense of the plan.
A PI Insurance plan is an annually renewable product, so it can remain in force for a single year or up to 7 years as you have noted in your question – the duration of coverage is up to you as the policyholder, should you no longer wish to hold the plan simply elect not to renew the policy at the anniversary date.
Public Liability will generally protect your business against your liability to members of the general public (3rd parties) and will normally involve issues like property damage and accidental injury. Most retail businesses in Hong Kong will, for example, hold a public liability insurance plan for shoppers on their property in the event that the shopper should accidently injure themselves whilst using the store.
There are many different public liability insurance options available in the Hong Kong market, and the exact type of coverage you will require will largely depend on the business activities of your client.
At this point the expert brokers at CCW Global would require further information about the specifics of your client’s business activities in order to provide any advice on the suitability of a specific insurance product. Please feel free to Contact Us to speak with a broker today, or discuss any additional questions you may have regarding Public Liability or Professional Indemnity Insurance coverage in Hong Kong.
Answered on: 13 February, 2017 14:32
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