produced by: robert kluth ba (hons) acii chartered insurance broker director – leisure division...
TRANSCRIPT
Lorica Insurance BrokersLiability Insurance
What is an adequate level of cover?
Produced by:Robert Kluth BA (Hons) ACII
Chartered Insurance Broker
Director – Leisure Division
December 2012
Lorica Insurance Brokers – our background
How can liability arise?
What cover is available?
What is an adequate level?
Any Questions
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Agenda
December 2012
Insurance Broker, whose Leisure Division specialise in the provision of insurance & risk management advice to the Amusement Industry
Although Lorica Leisure is a new division, key personnel are highly experienced in this sector
Work closely with trade associations, including BALPPA, IAAPA and BIAZA
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Lorica Insurance Brokers
December 2012
Your actions
Your omissions
Your advice
Assumed under contract
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How can Liability arise?
December 2012
Death
Personal injury
Property damage
Financial loss
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How can Liability arise? cont.
December 2012
Public Liability (PL)
Professional Indemnity (PI)
Directors & Officers Liability (D&O)
Legal Expenses
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What insurance cover is available?
December 2012
PL & PI are critical
I wouldn’t be a Director or senior manager of a company that didn’t have cover for D&O
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Which of these do you need?
December 2012
PL provides cover claims arsing from your physical actions
PL will exclude claims arising out of advice, design, specification, survey or direction for a fee
PI provides cover for the above
PI sometimes exclude claims for physical work on site or the sale of any products
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Difference between PL and PI
December 2012
I am only the inspector and the claim would be against the operator
If there is a fault with the ride it should be passed back to the manufacturer
I only inspect small juvenile rides
It is too expensive
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Arguments used as a defence for not having adequate insurance
December 2012
On a large loss everyone that had any involvement with the ride will be brought into the claim, either by the claimant or the defendant’s insurers
Without insurance can you afford to defend your position?
If your insurance cover is inadequate, your insurers could pay out the maximum limit of indemnity and walk away
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Arguments used as a defence for not having adequate insurance cont.
December 2012
Should provide cover for claims arising for both your actions and your advice
Needs to be able to respond to any size of claim that could arise
Needs to satisfy the requirements of your customers
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What is an adequate level of cover?
December 2012
The largest personal injury claim in the UK is £23,000,000 and that doesn’t include any costs!
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What size of claim could arise?
December 2012
The level of care the injured party will require
Cost of the care
Life expectancy
Investment returns
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How is a personal injury claim calculated?
December 2012
With advances in medicine, persons with severe injuries have more chance of survival and can live a lot longer
The cost of medical care increases each year
Investment returns have fallen significantly
The Result –personal injury awards will continue to increase
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How is a personal injury claim calculated? cont.
December 2012
No
If things go wrong, who would be hurt and how extensive would their injuries be?
The claim will be expensive if the injuries are permanent and will result in the injured party requiring ongoing medical care and assistance
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Does the size of rides inspected have any relevance?
December 2012
The suitability of the insurer (financial stability)
Is the limit of indemnity inclusive of cost?
Do any of the contracts you have impose upon you minimum requirements in respect of liability cover?
Do you know what insurance cover your clients hold?
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What other factors need to be taken into account?
December 2012
It is dependent upon precisely the work you do, every business is different. However
The limit of indemnity for PI should be at least equal to that you have for PL
A limit of indemnity of less than £1,000,000 is likely to be inadequate
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What is an Adequate Level of Cover?
December 2012
Your Company may have Limited Liability, unfortunately Directors do not!
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Insurance comes at a cost, but can you afford to be without adequate insurance?
December 2012
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Any Questions?
December 2012