5. Professional Liability (also known as Errors & Omissions or E&O): Protects against claims alleging professional negligence or errors in the services provided. 6. Worker's Compensation: Offers coverage for work-related injuries or illnesses suffered by employees and provides medical expenses and wage replacement. Operational Risk focuses on risks associated with a company's day-to-day operations and administrative activities: 1. Administrative Actions: Covers legal expenses arising from administrative actions, such as government investigations or regulatory compliance issues. 2. Cyber Risk: Protects against losses resulting from data breaches, cyberattacks, or unauthorized access to confidential information. 3. Employment Practices: Provides coverage for claims related to employment-related issues, such as wrongful termination, discrimination, or harassment. 4. Litigation Defense Expense: Covers legal expenses incurred in defending against lawsuits or claims. 5. Business Risk Indemnity: Protects against financial losses resulting from unexpected events or disruptions to business operations. 6. Legal Expenses: Covers legal costs incurred in various legal matters, including contract disputes, intellectual property issues, or contractual negotiations. 7. Commercial Crime: Provides coverage for losses due to fraudulent activities, such as employee theft, forgery, or computer fraud. 8. Excess General Liability: Offers additional liability coverage above the limits of primary general liability insurance. 9. Excess Professional Liability: Provides additional coverage above the limits of primary professional liability insurance. 10. Existing Deductibles: Refers to the deductibles that need to be satisfied before insurance coverage kicks in. Strategic Risk focuses on risks that can significantly impact a company's long-term success and strategic objectives: 1. Business Interruption: Covers financial losses resulting from the interruption of business operations due to events like natural disasters, equipment breakdowns, or supply chain disruptions. 2. Contract Termination: Protects against losses incurred when contracts with key clients or suppliers are terminated prematurely. 3. Subcontractor Default: Covers losses resulting from the failure of subcontractors to fulfill their contractual obligations. 4. Reputational Damages: Addresses losses arising from damage to a company's reputation, such as negative publicity, customer dissatisfaction, or public perception issues. 5. Terrorism: Provides coverage for losses resulting from acts of terrorism or politically motivated violence.
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