Liability insurance also known as Commercial insurance protects you in the event you are sued for claims that come within the coverage of your liability insurance policy.
Types of Liability Insurance:
PUBLIC LIABILITY INSURANCE
This type of insurance would cover a business if a customer or member of the public was to suffer a loss or injury as a result of its business activities, and if that person made a claim for compensation. The insurance would cover the compensation payment plus any legal expenses.
PRODUCT LIABILITY INSURANCE
Product liability insurance covers the cost of compensating anyone who is injured by a faulty product that your business designs, manufactures or supplies.
PROFESSIONAL INDEMNITY INSURANCE
This policy is a form of liability insurance that helps protect professional advice and service-providing individuals and companies from bearing the full cost of defending against a negligence claim made by a client, and damages awarded in such a civil lawsuit.
DIRECTORS AND OFFICERS LIABILITY INSURANCE
This policy is a liability insurance payable to the directors and officers of a company, or to the organization(s) itself, as indemnification (reimbursement) for losses or advancement of defense costs in the event an insured suffers such a loss as a result of a legal action brought for alleged wrongful acts in their capacity as directors and officers. Such coverage can extend to defense costs arising out of criminal and regulatory investigations/trials as well; in fact, often civil and criminal actions are brought against directors/officers simultaneously.
WORKMEN’S COMPENSATION INSURANCE
This policy cover the employer in respect of the statutory liability under the Workmen’s Compensation Law(s) as well as at Common Law to the employees who are generally not covered under SOCSO.
This policy indemnifies the employer against all sums for which the employer shall be liable to pay compensation to any employee for personal injury sustained by accidents or occupational diseases arising out of and in the course of this employment under the Acts.
FOREIGN WORKERS’ COMPENSATION SCHEME
Employers who are employing foreign workers must comply with the statutory requirement under Section 26(2) of the Amended Act 1996 of Workmen’s Compensation Act 1952 to purchase this insurance to protect their foreign workers.
This policy indemnifies the employer under the Act in respect of compensation for employment injury as well as non-employment injury sustained by your foreign workers.
FOREIGN WORKERS HOSPITALIZATION AND SURGICAL INSURANCE SCHEME
The Foreign Workers Hospitalization and Surgical Insurance Scheme (FWHS) or better known as SKHPPA is specially designed in view of increasing Hospital and Surgical charges and to reduce financial burden of the Employers of foreign workers in the event of hospital admission of their foreign workers due to accident or illness. Coverage is required before work permit is issued by Immigration Department for both new and renewal applications.
EMPLOYERS’ LIABILITY INSURANCE
This policy covers the employer because the employer may be at risk of being sued by those employees who are not protected by Workmen’s Compensation Acts or SOCSO.
This policy indemnifies the employer against liability at law to pay compensation and cost and expenses to your employees in respect of accidental bodily injury or disease arising out of or in the course of employment. The standard Common Law limit is RM1,000,000 any one accident and in the aggregate.