MULTIMEDIA PROFESSIONAL LIABILITY INSURANCE - specially structured for the Media, Events, and Entertainment Industry in India.
What is professional indemnity insurance?
Professional indemnity insurance is a type of business insurance that indemnifies the service provider company and its senior managerial staff when they commit an error that landed them in legal trouble.
The insurance provides coverage against legal liabilities, threat of litigation and potential resulting damage. In an economic environment of increased responsibilities and accountabilities, this type of insurance plays an important role in risk management.
Human error is natural and inevitable. But human errors can cause enormous loss and may put an end to business (service provider) or career of a professional. Inadequate services, error in judgement, medical diagnosis and incorrect advice can land the service provider or professional in legal trouble if the client takes the legal action to seek compensation. This is where the role of professional indemnity insurance comes into play.
Why is it important to have professional indemnity insurance?
When you work hard towards your profession or business, for its growth, it makes sense to protect it. Professional indemnity insurance is an ideal way to secure your company and your business against the claims of malpractice, negligence or error. Businesses or professionals are often sued because of the mistakes they make. If the client takes the legal action, financial loss that you may suffer would take a very long time to recover or it can even end your business or career.
Scope of coverage in professional indemnity insurance
Legal liability insuring clause
·??????We agree to indemnify you against legal liability for compensation as arising from any claim for defamation or as a result of a breach of professional duty in the conduct of your profession
?Costs and expenses insuring clause
·??????We agree to pay costs and expenses incurred with our written consent in the defence or settlement of any claim as indemnified under this policy.
?Defamation
·??????We agree to indemnify you against liability for compensation arising from any claim made against you for defamation, harassment, trespass, false arrest, wrongful detention or imprisonment.
Intellectual property
·??????We agree to indemnify you against liability for compensation arising from any claim made against you for any unintentional infringement of copyright, trademark, registered design or patent, or any plagiarism or breach of confidentiality. The onus of proof whether the infringement was unintentional lies with you.
Breach of privacy
·??????We agree to indemnify you against liability for compensation arising from intrusion upon, interference with or infringement of the right to publicity, the right to privacy, family life, a person’s home or correspondence including the torts of intrusion upon seclusion, false light and misappropriation of name or likeness and including breach of data protection legislation, wrongful entry or eviction, eavesdropping or invasion of private occupancy.
Joint venture liability
·??????We agree to indemnify you in respect of any claim made against you for that proportion of any legal liability arising out of any activities in which you are engaged as a joint venturer.
Outgoing principals and employees
·??????We agree to indemnify former principals, partners, directors and employees of the Insured in respect of Legal liability Insured by insuring clauses A and B provided that the definition of ‘You’ includes those persons and only in respect of work performed in capacity while being a principal, partner, director or employee of the Insured.
Vicarious liability
·??????We agree to indemnify you in respect of any claim made against you arising from any act, error or omission committed or alleged to have been committed by any third party for whose acts, errors or omissions you are legally liable, provided that such coverage shall not extend to any such third party.
?Policy extensions
?Court Attendance Cost
·??????We agree to provide for court attendance costs incurred by employees of yours, or by partners, principals or directors of yours if they are legally compelled to attend a civil proceeding as a witness in a claim covered by this policy. The sublimit under this extension is as mentioned on the face of the schedule. This is within the limit of indemnity and not in addition to the aggregate limit of indemnity mentioned in the schedule.
Estates and legal representatives
·??????We agree to include in the definition of ‘You’ the estate, heirs, legal representatives or assigns of yours in the event of the death or incapacity of you in respect of a civil liability that would have been covered by insuring clause A or B had it been if you were alive or had capacity, provided that such estate, heirs, legal representatives or assigns shall observe and be subject to all the terms of this policy in so far as they can apply.
Extended reporting period
·??????In the event that this insurance is not renewed or is cancelled for any reason other than non-payment of premium, then you have until such time till you effect another professional indemnity insurance policy or till the period as specified in the schedule commencing on the day immediately following expiry of this policy, whichever is the lesser period, during which to notify us of any claim first made against you during the period of insurance , provided that this extension:
1.????does not reinstate or increase the limit of indemnity or extend the period of insurance ; and
2.????will only apply to acts, errors or omissions committed or alleged to have been committed by you before the end of the period of insurance or on the cancellation date of this policy where this policy has been cancelled.
Fines and penalties
We agree to indemnify you against legal liability which would otherwise be excluded by the ‘Pollutants’ exclusion, part (2), for:
1.????a penalty imposed on you by any regulatory authority arising from any actual or alleged breach of any occupational health and safety or environmental legislation.
2.????any compensatory civil penalty; and
3.????any costs and expenses incurred with our written consent in the defence or settlement of any penalty
4.????indemnified by this extension.
Fines and penalty imposed on you and arising out of default in complying with any regulatory
prescriptions as applicable to You
Loss of Documents
We agree to indemnify you for the loss of any documents (including but not limited to your documents), for which you are legally responsible, that have been unintentionally destroyed, damaged, lost or mislaid in the conduct of your profession and, after diligent search or attempts to recover them, cannot be found or recovered; provided that:
1.????the loss is discovered by you during the period of insurance and reported to us during the period of insurance.
2.????such indemnity shall be limited to reimbursement of reasonable costs and expenses incurred by you to replace or restore such documents and shall not extend to any consequential or indirect loss; and
3.????we shall not be liable under this extension to provide indemnity in respect of damages to documents caused by gradual deterioration, wear and tear, or the action of moths or vermin.
Our total liability in respect of all claims made under this extension shall not exceed limit as specified under the policy schedule.
Newly Created or Acquired Entity or Subsidiary
1.????We agree to provide coverage to any entity or Subsidiary acquired or created by you other than in the territorial jurisdiction of USA/Canada by you during the Period of insurance. Further, such coverage shall automatically apply to be covered under this policy from date of such acquisition or creation provided that the revenue of such acquired or created entity or subsidiary is less than or equal to 35% of the gross total revenue of the Insured.
2.????We may, at its discretion, agree to provide coverage to acquired or related entity or subsidiary other than covered under the territorial jurisdiction of USA/Canada where the revenue of such entity or created subsidiary is more than 35 %of the gross total revenue of the Insured where:
????????I.????????the Insured has notified us of the acquisition or creation of the entity or Subsidiary and has provided all information as requested by us; and
????????II.????????any terms imposed by us including the receipt of any additional premium as considered appropriate and has been agreed by the Insured.
Provided always that any coverage provided under this Extension will only apply in respect of legal liability for breach of professional duty by reason of any negligent act, error or omission occurring subsequent to the date of acquisition or creation, unless otherwise agreed to in writing by us.
Official investigations and enquiries – costs and expense
We agree to pay investigation costs and expenses, provided that:
1.????We shall be entitled, at our discretion, to appoint legal representation to represent you in the investigation, examination or enquiry.
2.????The investigation, examination or enquiry, or notice of intended investigation, examination or enquiry is commenced during the period of insurance and is notified to us during the same period of insurance ;
3.????in the event that a claim for payment of investigation costs and expenses is withdrawn or indemnity under this policy is subsequently withdrawn or denied, we shall cease to advance investigation costs and expenses. Moreover, you shall refund any investigation costs and expenses advanced by us to the extent that we are satisfied that you were not entitled to such investigation costs and expenses, unless we agree in writing to waive recovery of such investigation costs and expenses; and
4.????our total liability in respect of investigation costs and expenses for all claims made under this policy extension shall not exceed the limit as mentioned in the schedule of the policy.
For the purpose of this policy extension, an official investigation, examination or enquiry includes an investigation, examination or enquiry by way of a commission or coronial enquiry or conducted by a regulatory authority or any disciplinary committee of any association or professional body of which you are a member, but does not include any investigation, examination or enquiry as conducted by a parliament.
Our total liability in respect of all claims made under this extension shall not exceed aggregate limit of indemnity as specified under the policy schedule.
Public relations expenses
·??????Where you retain the services of a public relations consultant for the sole purpose of protecting your reputation that has been brought to question as a direct result of a claim as covered by this policy. In the event that Insured reasonably considers that the services of a public relations consultancy are required ,then we shall reimburse reasonable fees, costs and expenses incurred, with our prior written consent, of public relations consultants as retained by you directly to mitigate the adverse effect or potential adverse effect on your reputation from a professional service as covered under this policy, by disseminating the findings as made in a final judicial disposition of the Claim which exonerates you from fault, liability or culpability.
·??????Our total liability in respect of all claims made under this extension shall not exceed aggregate limit of indemnity as specified under the policy schedule.
Emergency cost
·??????We shall reimburse emergency costs only upon receipt of a written request from the Insured within thirty 30 days of those emergency costs being incurred.
·??????Our total liability in respect of all claims made under this extension shall not exceed aggregate limit of indemnity as specified under the policy schedule.
Extended reporting period
In the event that this insurance is not renewed or is cancelled for any reason other than non-payment of premium, then you have until such time that you effect another professional indemnity insurance policy or till the period as mentioned in the schedule of the policy, commencing on the day immediately following expiry of this policy, whichever is the lesser period, during which to notify us of any claim first made against you during the period of insurance , provided that this extension:
1.????does not reinstate or increase the limit of indemnity or extend the period of insurance ; and
2.????will only apply to acts, errors or omissions committed or alleged to have been committed by you before the end of the period of insurance or on the cancellation date of this policy where this policy has been cancelled.
Legal Counsel Clause
We shall not require the Insured to contest any Claim unless the Insured has been advised by legal expert/ subject matter legal expert that such Claim should be contested having full consideration as to:
1.????the financial implications, damages and costs likely to be recovered by the claimant; and
2.????the likely Defence Costs and expenses; and
3.????the prospects of the Insured successfully defending the Claim.
The costs of obtaining such legal opinion/subject matter legal opinion shall be regarded as part of Defence Costs and expenses. Where a mutually accepted legal expert/ subject matter legal expert is not agreed upon within thirty (30) days of this clause being invoked, then the legal expert/ subject matter legal expert shall be nominated and appointed by us. It is hereby agreed and understood that (i) this is not an arbitration clause; (ii) that legal counsel will act as an expert and not an arbitrator, and (iii) legal counsel’s advice shall not be or be deemed to be construed as an arbitration award.
Run off cover
·??????We agree that in the event that the Insured or any other Insured entity ceases to exist or operate or is consolidated with, merged into or acquired by any other entity then the coverage provided under this policy with respect to such Insured entity shall continue until the expiry date of the period of insurance , provided that such coverage shall only apply in respect of claims arising from an act, error or omission occurring prior to the effective date that you or such Insured entity ceased to exist or operate or was consolidated with, merged into or acquired by another entity.
Severability
We agree that where this policy insures more than one party, any conduct whereby such party:
1.????failed to comply with the duty of disclosure in terms of any applicable relevant regulatory enactment as prevailing and applicable to or
2.????made a misrepresentation to us before this contract of insurance was entered into, shall not prejudice the right of any other Insured party to indemnify as may be provided by this policy, provided that:
3.????such other Insured party shall be entirely innocent of and have no prior knowledge of any such conduct;
4.????such other Insured party shall as soon as is reasonably practicable upon becoming aware of any such conduct, advise us in writing of all known facts in relation to such conduct; and
5.????conduct of the entities or persons referred to in the definition of ‘You’ parts 1 and 2 are imputed to the Insured
Thanking You - Your Insurance Consultant
Khushroo Kekobad. M - +919967077845
