From a business continuity and financial perspective major liability claims can impact a business in a number of ways.
Executives can be tied up in court legal proceedings for weeks, months or longer.
Premises and equipment may be taken out of commission.
The sale of products or services can be suspended.
Products or components can be withdrawn or even confiscated.
Competitors will seize the opportunity to realise an advantage.
Traditional liability policies such as Public and Products, Employers and Statutory Liability only provide coverage for the costs associated with the defence of an action and any damages awards. They do not indemnify the Insured for the consequential loss suffered by the Insured and its business.
A Liability Consequential Loss policy is particularly relevant in situations where a business is heavily reliant on one or very few customers or where competition in its operating environment is intense.
The addition of this unique insurance product to a traditional liability programme will further enhance its effectiveness in protecting a business against unexpected financial losses.
