AIG Liability Protect. Summary of Changes

Transcription

1 AG Liability Protect Summary of Changes

2 AG Liability Protect Summary of Changes Welcome to Liability Protect On expiry of your existing CP05.09 Comprehensive Liability Policy, AG will renew your cover using our new CP12.16 Liability Protect Policy. This document summarises existing highlights, key enhancements and differences between the CP05.09 policy and the new CP12.16 Liability Protect Policy. t does not take any endorsements on your existing policy into account and is not a comprehensive list of every difference. Please take time to review your existing policy in conjunction with this document and your renewal invitation to ensure you are familiar with the changes. We realise our business clients are as individual as the people who work within them. Where we have previously tailored cover to suit your particular circumstances we will continue to do so. f you have additional cover requirements or any queries or concerns regarding the Liability Protect Product, please contact your insurance broker who will be able to assist you. Key to type of change ew nhanced ighlight (an existing coverage point) nformational/policy Change Summary of Changes Change Policy Reference Comment Liability Protect Beyond Liability nsurance Liability Protect Policy Structure Liability Protect continues to provide AG customers with a Comprehensive Liability policy. t goes Beyond Liability nsurance Liability Protect goes beyond conventional liability insurance with a host of innovative and differentiated covers and services - Recall - RAB - Crisis - Clean-Up Costs Liability Protect can even look to offer cover for Cyber Liability ndeavoured to make policy structure simpler and clear. Policy Schedule & ndorsements now separate from the Policy Wording. Coverage Sections moved to the very front of the Policy Wording. ndexing has been reviewed and updated to make referencing clear and consistent. mployers Liability Coverage Section 1 mployers Liability Territorial scope of cover previously detailed in the nsuring Agreement, now included in the Policy Territory Definition for clarity and ease of reference. A1.1.3 Legal Costs Legal Costs payable in addition to the Limit of ndemnity A1.2 xtensions Referencing improved and linkage to nsuring Agreement clear and consistent. A1.2.3 Compensation for Court attendance Limits increased from GBP500 & GBP250 to GBP750 & GBP500 2

3 AG Liability Protect Summary of Changes A1.2.4 TUP A1.2.5 DPA A1.2.6 Criminal Legal xpenses A1.2.9 & A1.3.2 Offshore Activity A1.3 War, uclear & Radioactive Contamination Signposting claims made and reported basis to improve transparency. Basis of cover now clearer. TUP Coverage included as standard Signposting claims made and reported basis to improve transparency. DPA Coverage included as standard More clearly defined and distinct from Legal Costs. Criminal Legal xpenses have a 5m Limit payable in addition to the Limit of ndemnity. Basis of cover now integrated in to the Policy Wording rather than by ndorsement, where Limit stated in the Policy Schedule o xclusions Public & Products Liability A2.1.1 nsuring Agreement Revised for Policy consistency across Section 2 and other parts of the Policy, including L Section. Language consequent upon replaced with in respect of. A2.1.1 Policy Territory Base position is now Worldwide Policy Territory Subject to any applicable ndorsement. A1.2.3 Legal Costs Legal Costs in respect of Canada now payable in addition to the Limit of ndemnity. o longer costs inclusive. A2.2 xtensions Referencing improved and linkage to nsuring Agreement clear and consistent. A2.2.2 Compensation for Court attendance A2.2.2 Criminal Legal xpenses Limits increased from GBP500 & GBP250 to GBP750 & GBP500 More clearly defined and distinct from Legal Costs. Criminal Legal xpenses are payable in addition to the Limit of ndemnity with Corporate Manslaughter limited to GBP5,000,000 A2.2.5 Contingent Motor ot restricted to just the UK or the uropean Union xtension amended to provide a clearer position regarding USA & Canada. A2.2.6 Overseas Personal Liability Broadened to include dependent family members A2.2.8 Legionella A Member to Member Liability Broadened to include leased, rented or temporarily occupied premises. Previously applied only to owned premises. Occurrence trigger. Member to member liability cover provided as standard A Vendors Liability Blanket Vendors Liability xtension A Data Protection Act Signposting claims made and reported basis to improve transparency. 3

4 AG Liability Protect Summary of Changes Cross Reference Personal njury (other than Bodily njury) xclusion. USA & Canada xclusion. DPA Coverage included as standard. Payable in addition to the Limit of ndemnity and not sub-limited. A Joint Ventures ew xtension to address an nsured s interest in Joint Ventures A Care Custody and Control (Working on Property) A Asbestos (Accidental Discovery) A Products Financial Loss A USA & Canada Pollution (Time-lement Basis) ew xtension providing cover in respect of damage to property contracted to be worked upon or due to be worked upon by the nsured and in trust. Limit GBP100k subject to coinsurance/minimum contribution ew Optional xtension. Asbestos xclusion shall not apply where discovery of asbestos is accidental and provided that all work stops immediately, specialist contractors are engaged and circumstances notified to AG straight away. Claims made & reported xtension. Previously, a full xclusion would always apply. An ndorsement would sometimes be added, now integrated.. ew Optional xtension. Pure financial loss arising from Products not in respect of Bodily njury or Property Damage. Claims made & reported xtension. Limit and coinsurance/minimum contribution as stated in the Policy Schedule. Previously added by ndorsement, now integrated. Refer Policy Schedule to see if operative. ew Optional xtension. Providing write-back of Pollution in USA & Canada on a time element basis. Previously, a full xclusion would always apply.. A2.3.2 mployers Liability Amended for greater clarity. Moved from nsuring Agreement (Personal njury to any person not being an mployee) to be a specific xclusion. A2.3.4 Custody or Control Point d) iii) deleted, the deductible to Section 2 now applies to all claims Point e) added to take into account xtension A2.2.7 (Unauthorised Movement of Vehicles) A2.3.6 Professional Advice & Design for a Fee xclusion in respect of advice, design, service or specification for a fee does not exclude Bodily njury or Property Damage A Contractual Liability Amended to provide clarity of coverage in connection with Products in respect of contractual liability implied at law (Sale & Supply of Goods Act) A Financial Loss Added for clarity. Pure Financial Losses are not covered in the nsuring Agreement. A Personal njury (Other than Bodily njury) Advertising njury now part of Personal njury for clarity. Previous xclusion restructured to reflect intent to no longer restrict USA & Canada to Bodily njury only, in line 4

5 AG Liability Protect Summary of Changes with US CGL Policy Form. xclusion of Personal njury in respect of electronically stored confidential or personal information, but this does not apply to Bodily njury or to Data Protection Act xtension. A Advertising njury (Personal njury (Other than Bodily njury)) A2.4 Mixing or Blending Additional Provision A2.5 Multinational Addendum USA no longer excluded. Additional provision added to provide clarity of intent as this does remain an area of potential concern for many in the aftermath of the Bacardi -Thomas ardy case. Whilst AG has not sought to rely on this case, Liability Protect now provides clarification of damage following the mixing or blending of the nsured s defective product. Property Damage is deemed to include events where third party products are lost or destroyed as a direct result of their incorporation into a Composite Product and such Composite Product created or produced is immediately defective ew integrated Multinational Addendum providing Master Cover as part a Global Public and Products Liability programme to the those customers with multinational exposures. A broad suit of coverage options including Difference in Conditions and Difference in Limits, along with Financial nterest, Residual and xcess mployers Liability, xcess Auto and Tax Liability. A Difference in Conditions A Difference in Limits Where the terms & conditions of this Master Policy are broader than the Local Policy in respect of Public & Products Liability. Where the limit of this Master Policy are broader than the Local Policy in respect of Public & Products Liability. A Global Coverage Where agreed, this Master Policy will provide non-admitted coverage. A Financial nterest Financial nterest Clause can provide a mechanism to facilitate payment following a loss (there may be occasion where direct payments in to a territory may be prohibited for legal/regulatory reasons) A Tax Liability When claims payments have to be paid to a different territory for legal/regulatory reasons, additional tax may apply in that territory. Liability Protect as a master policy provides cover for the additional amount necessary to offset these additional taxes. GBP100,000 Limit. A Residual Providing agreed contingent mployers Liability coverage 5

6 AG Liability Protect Summary of Changes mployers Liability A xcess mployers Liability A xcess Automobile Liability A2.5.3 Multinational Definitions to customers with multinational exposures. Providing agreed xcess mployers Liability coverage to customers with multinational exposures. Providing agreed xcess Automobile Liability coverage to customers with multinational exposures. Self-contained Multinational Definitions A USA & Canada Clause previously added as part of DC/DL ndorsement including USA & Canada. ow integrated as part of the Multinational Addendum. Personal njury no longer excluded (Previously Bodily njury) and in line with US CGL Policy Form. Pollution, Terrorism, Punitive Damages and Advice for a Fee excluded from DC only (not DL). A Master Policy Operation Stating Master Policy position where Local Policies operate differently (eg. armful vent) A Operation of Limits Stating overall programme Limit of ndemnity and interaction of Master Policy and Local Policies A Deductible Operation A Multinational Terms & Conditions Stating that the Master Policy Deductible shall not apply where such Deductible has been paid under the Local Underlying Policy in respect of the same loss Stating requirements to enable the programme to operate effectively. Product Recall A3.1 Cover Beyond Liability nsurance Product Recall Costs following a withdrawal, recall or Government Recall in respect: - Withdrawal costs - Restoring/Replacing - Consultant Costs Limit GBP50,000 Amended to clarify that Product Recalls reported up to 30 days after expiry of the Period of nsurance are covered provided that the recall commenced during the Period of nsurance A Supply of ncorrect Product Added for clarification RAB A4.1 Cover Beyond Liability nsurance o fault payments following an accident at work (See 6

7 AG Liability Protect Summary of Changes Schedule of Benefits) Limits All benefits increased Death, Permanent Total Disablement, Loss of Limb, Sight or earing ncreased from GBP10,000 to GBP25,000. Benefits consolidated from 10 to 6. Crisis Containment A5.1 Cover Beyond Liability nsurance Professional Public Relations 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. Limits ncreased from GBP100,000 to GBP150,000 Clean-Up Costs A6.1 Cover Beyond Liability nsurance Clean-up costs following sudden and accidental pollution incidents for operational and new conditions. Cover includes statutory debts for instance where emergency clean-up has been conducted by the local regulators. Limits ncreased from GBP1,000,000 to GBP2,000,000 A Policy Territory Broadened to uropean conomic Area (Previously GB,, sle of Man and Channel slands) Definitions B2 Advertising njury ew Definition for greater clarity and part of Personal njury B3 Bodily njury Amended. ow two limbs to the Definition, as previously the case. B5 Coinsurance Clarification of impact on Limit of ndemnity consistent with B8 Deductible B6 Composite Product ew Definition. Part of Additional Provision Mixing or Blending. B7 Criminal Legal xpenses ew Definition for greater clarity and distinct from Legal Costs Definition. B9 mployee Amended. ow includes persons trading as one-man limited companies. B11 Financial Loss ew Definition. Part of general Financial Loss xclusion. B12 ostile Fire ew Definition. Part of Optional xtension USA & Canada Pollution (Time lement) B19 Mixing or Blending ew Definition. Part of Additional Provision Mixing or Blending. 7

8 AG Liability Protect Summary of Changes B20 Motor Vehicle Revised to include semi-trailers B21 Occurrence Amended. Making clearer that repetition of Bodily njury and Property Damage relates to Section 5. B22 Offshore Activity Revised to include floating production storage and offloading units B24 Personal njury Amended. ow includes Advertising njury. B26 Policy Territory Amended. Definition now addresses Section 1 mployers Liability. Section 2 Public & Products Liability Base position is now Worldwide (Amended, as agreed, in respect of specific accounts). Reference to government embargos and sanctions removed. See Sanctions Limitation. B31 Products Financial Loss ew Definition. Part of Optional xtension Products Financial Loss B33 Retroactive Date ew Definition for greater clarity. B34 Underground Resources B34 Underground Resources quipment ew. Part of Section 6 (and Oil & Gas ndorsement, added case by case) ew. Part of Section 6 (and Oil & Gas ndorsement, added case by case) B36 USA ew Definition for greater clarity and ease of reference. General Provisions 1 Duty of Disclosure nformation Disclosed replaced with standard clause in respect of nsurance Act 12 - Sanctions ew xclusion added Assignment ew clause added to clarify that the policy or any benefit provided by the policy may not be assigned without the nsurers written consent 14 Contracts (Rights of Third Parties) Act 1989 ew clause added to clarify that the policy does not confer a directly enforceable benefit to any third party. 15 Governing Law Amended to include Scotland and orthern reland 16 nterpretation Moved to General Provisions for clarity. 8

9 AG Liability Protect Summary of Changes American nternational Group, nc. (AG) is a leading global insurance organization serving customers in more than 100 countries and jurisdictions. AG companies serve commercial, institutional, and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. n addition, AG companies are leading providers of life insurance and retirement services in the United States. AG common stock is listed on the ew York Stock xchange and the Tokyo Stock xchange. Additional information about AG can be found at YouTube: Linkedn: n urope, the principal insurance provider is AG urope Limited which is registered in ngland: company number Registered address: The AG Building, 58 Fenchurch Street, London C3M 4AB. AG urope Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority (FR number ). This information can be checked by visiting the FS Register ( 9