In general term, liability insurance will be activated when claim bought by third parties (not the insured and insurer) against the insured. Beside of the liability insurance already discussed – D/O, Environment, there are other types of liability insurance, such as:


Public liability & Product liability:

Under this insurance, insurer will pay to or on behalf of the Insured all sums which the Insured shall become legally liable to pay by way of compensation in respect of personal Injury or property damage happening during the period of insurance caused by an occurrence in connection with the business of the insured.

If any suit against the insured alleging such personal injury or property damage, the insurance is also cover for law costs and expenses.

The consequent loss of product liability claim is the expenses to recall the product; the expenses will be covered under other time of insurance called Product Recall. Failure of the insured’s product leads to legal action that is covered under the product liability insurance, then expesses to recall the products will be covered under this insurance.


Professional Indemnity (PI) – Errors & Omissions Insurance (E&O)

These insurance covers is to protect a professional services firm from risk of litigation comes from many resources, including failure to perform to the required standards, inadvertent error or the unintended consequences of seeming appropriate advice, failure to adhere to accept accepted prior or post procedural protocols leading to serious claim or law suits against the firm.

The insurance covers for:

  • claims brought by third parties (usually the client or those who rely upon the services or activities that the firm provide)
  • claims arising from the professional’s negligent acts, errors or omission
  • coverage extends to individuals and the entity
  • coverage includes defense costs, settlement and judgments

The scope of cover, terms and conditions of liability insurance are normally standardized, however to understand well of the coverage, especially what steps correctly to be taken when having legal actions from third parties is important, we are willing to support our clients in dealing with the case.