A public liability insurance (business liability insurance, conventional product liability insurance) provides insurance cover for obligations to pay compensation, which the policyholder accrues from bodily injury or property claims on the basis of statutory liability terms under private law. The liability insurance includes the checking of the liability question, i.e. the defence against unjustified claims and providing indemnity for liability in respect of justified claims.
Usually, a liability insurance consists of five elements of contract:
- General provisions,
- Premises risks,
- Product liability risks,
- Environmental liability and
- Environmental damage insurance.
The basic product liability coverage can, as circumstances require, be extended. The extended product liability insurance provides coverage for financial losses incurred by customers from industry and trade on account of statutory liability provisions, arising, for example, from:
- Combining losses, mixing losses, workmanship defects
- Damage caused during further processing or processing damage (product protection)
- Costs for dismantling and installation
- Damage due to defective machines, and optionally
- Testing costs and sorting costs
Even though insurance cover does not apply to all financial losses (e. g. claims for contract performance or should damages be claimed in lieu of performance), insurance benefits are provided for contractual arranagements that go beyond any legal liability. You can select between different modules:
- Extension of the legal periods of limitation and warranty periods (warranty for defects) – Note: limited in time
- Simplification of the commercial obligation of inspection, notification and rejection of incoming goods in accordance with Section 377 of the German Commercial Code (§ 377 HGB)
- Inclusion of the 'retail chain clause'
As our client, you benefit from modules, which are well beyond common insurance coverage and which are tailored to meet your requirements, for example: recall costs insurance, product liability insurance, environmental liability insurance and environmental impairment insurance. We arrange international insurance programs including DIC (difference in conditions) and DIL (difference in limits) solutions for you that are designed to fit your individual needs.
In the liability insurance segment, we offer the following insurance coverages:
- Public liability insurance
- Product liability insurance
- Product protection insurance
- Extended product liability insurance
- Environmental liability insurance
- Environmental impairment insurance
- Recall costs insurance
- Product safety, ransom, extortion insurance (kidnap for ransom)
- Professional liability insurance
- Motor vehicle liability insurance
- Radiation liability insurance
- Financial loss liability insurance
- Prospectus liability insurance
- Cyber liability insurance
- D&O insurance (Directors and Officers)
- M&A insurance (Mergers and Acquisitions)
When a claim is made against a company (legal entity) or against a natural person by a third party by reason of legal liability, the question arises, whether, and if so, to what extent, this is justified. This is where a liability insurance comes in handy, if it was taken out for the respective risk (e. g. business description or scope of cover).
Insurance coverage includes examination of the liability issue, defending against unjustified claims and the indemnification against justified claims for damages.
Therefore, liability insurance is one of the most important insurances.
An environmental liability insurance covers claims for damages under private law that third parties can assert against you due to an environmental impact.
An environmental impairment insurance protects against claims under public law that may arise as a result of the Environmental Damage Act. Environmental damage is defined by law as damage to protected species and natural habitats.