Zen Vichaar

  Directors and Officers (D&O) insurance provides coverage for the personal liability of directors and officers as individuals, and for the company itself. This insurance is crucial for protecting these key individuals and the organization (in specific situations) from claims related to their management decisions. D&O insurance primarily covers legal fees, settlements, and other costs associated with claims of wrongful acts, mismanagement, or negligence.    Another important coverage provided by D&O insurance policies is for the costs relating to claims or legal costs related to breach of any Occupational Health and Safety (OHS) law or regulation that includes death but is not limited to it. Let us look at the Occupational Health and Safety Defense Costs in D&O policies in more detail.   Claims related to OH&S issues   Directors and officers can be held personally liable for failing to ensure a safe working environment. If an empl...

  One of the important exclusions in liability insurance policies is the antitrust exclusion. Antitrust exclusion indicates a clause that excludes coverage for claims or losses arising from antitrust violations.  Antitrust can be understood as “regulations that encourage competition by limiting the market power of any particular firm thereby preventing or controlling monopolies so as to promote fair competition in business”   Insurance policies include exclusions for certain types of risks, and antitrust exclusion specifically addresses the risks associated with antitrust lawsuits. Antitrust exclusions are part of liability policies to help limit insurers from exposure to potentially large and unpredictable losses that can arise from antitrust lawsuits. Apart from this, antitrust cases can result in substantial legal fees, settlements, and judgments, which can be financially burdensome for insurers. In D&O policies, the antitrust exclusion refer to claims such...

      Liability policies such as D&O policy, Professional liability, Public liability, CGL policy and product liability policies have exclusions like every other insurance policy. An important exclusion is the criminal act exclusion in liability policies.   Criminal act exclusions in liability insurance policies are provisions which exclude coverage for claims arising from criminal acts committed by the insured. The criminal act exclusion makes the insurance contract void if it is evident that the insured is making a claim for a loss that has occurred due to criminal actions or lawless behavior by the insured. In short, the criminal act exclusion means that if the insured is involved in an illegal activity or commits a crime, the insurance policy will not cover any resulting claims or damages. Purpose of the criminal act exclusion The primary purpose of this exclusion is to prevent individuals or entities from using insurance coverage when they...

  Businesses can be at risk of a data breach, malware infection, or cyberattack if it conducts any online operations, transactions, or communications. To shield your company from severe financial loss, it is advised that you not only review and improve your company's cybersecurity best practices but also think about getting a comprehensive cyber insurance policy. Cyber liability insurance provides protection against the myriad risks associated with conducting business in a digital world. Let us explore the key benefits of having cyber liability insurance. 1. Financial Protection Cyber liability insurance covers the financial losses associated with cyber incidents, including: Data Breach Costs: Expenses related to data breaches, such as notification costs, credit monitoring for affected individuals, and forensic investigations. Business Interruption: Coverage for lost income and extra expenses incurred due to a cyber incident that disrupts normal bu...

Rahul had a sudden heart attack and had to undergo an emergency angioplasty. Earlier that year, he injured his knee while cycling and underwent surgery. Rahul was confident that his health insurance policy will cover his angioplasty cost in spite of the fact that his policy paid for his knee surgery earlier. But he was disappointed that his health insurance policy failed to pay for his angioplasty because he had exhausted his claim amount in that policy year. This was because he had not opted for the restoration of sum insured benefit in his health insurance policy. Restoration benefit is an add-on feature in health insurance policies that offers an additional sum insured after the original sum insured is exhausted in a policy year.  This blog looks at the restoration benefit in detail and the conditions and clauses associated with this feature in a health insurance policy. Restoration of sum insured After purchasing a health insurance policy, one can have peace of mind knowing tha...

  Liability insurance policies protects both individuals and companies against the possibility of being held legally liable or sued for carelessness, malpractice, or harm. These insurance policies shield the insured against financial penalties and settlements that the policyholder is held accountable for.   Intentional and wilful act exclusions in liability policies refer to provisions that exclude coverage for damages or injuries resulting from acts that the policyholder intentionally or willfully committed. These exclusions are commonly found in various types of liability insurance, such as general liability, professional liability and product liability etc. The rationale behind these exclusions is to prevent individuals from benefiting from insurance coverage for harmful acts they deliberately caused.   Let us look at the definition of intentional and wilful acts to understand this exclusion.   Intentional Act: An act done with the intent to cause harm...

A non-cancellation clause in liability insurance policies is a provision that ensures the policy cannot be canceled by the insurer for any reason other than non-payment of premiums. This type of clause offers significant protection to the insured, providing them with a sense of security that their coverage will remain in place as long as they pay the premium. This helps them in planning their risk protection plan on the longer term basis.   The non-cancellation clause stipulates that the insurer cannot cancel the policy during its term except for the non-payment of premiums. This includes prohibiting cancellations for reasons such as changes in risk or claims history. The non-cancellation clause provides stability and predictability for policyholders, particularly important for businesses that need to demonstrate continuous coverage to clients, regulators, or other stakeholders. Let us learn more about the non-cancellation clause in this blog. Application of the non-cancellati...