Overview of the liability insurance policy

B) Discuss the services provided by the liability insurance.

А) Sum up the text in several sentences and present your summary in class.

C) Look for articles about Ukrainian insurance companies. Present your information in class and comment on it.

B) In order to get prepared for participation in class discussion, write a summary of the text.

A) Write down three-five questions about the text.

LLOYD’S OF LONDON

Lloyd's, the biggest insurance business in the UK and in the world, is not a company, but an association of London underwriters. It was incorporated in 1871 and it is so called from Edward Lloyd.

Edward Lloyd was the owner of a coffee house where underwriters at that time met to do business.

Lloyd's is regulated by several Acts of Parliament and by its own rules. It is administered by the Council of Lloyd's.

Today more than 20 000 members of Lloyd's in 80 countries work for Lloyd's. Underwriting members or underwriters are grouped into 280 syndicates, generally specialising in particular types of risks. The syndicates vary in size from the relatively small units to the units of several thousand individuals.

Insurance is usually undertaken through Lloyd's brokers rather than directly with Lloyd's underwriting members.

Lloyd's brokers know better what syndicate to approach and how to negotiate the business. They act, like other brokers, and negotiate on behalf of their customers. They do not bear any risks, since only underwriting members bear all the risks with unlimited liability. One of the main principles of insurance with Lloyd's is the spreading of risk as widely as possible among syndicates to minimise their losses. Lloyd's is best known as a centre of marine insurance, but at the same time all kinds of insurance are practiced there. In fact, at the present day marine insurance comprises less than half the total business undertaken. Almost anything can be insured there as well: aircraft, communication satellites, civil engineering projects, livestock and so on.

Besides they do some business in travels, publishing⁰ and land. It exists because it has evolved over the centuries to meet the needs of the day.

Lloyd's motto Fidentia means confidence in the future.

Words you may need:

underwriter – андерайтер

to negotiate – вести переговори

to bear (bore, borne) – нести, терпіти

spread – поширювати (ся)

comprise – охоплювати

satellite – супутник

evolve – розвивати (ся)

motto – девіз, лозунг

confidence – довіра

Liability insurance protects your company in case it is sued or held legally liable for injury or loss caused by a mistake made by your company. The development of your risk management plan as part of your business insurance plan will limit the risk of error; however, that risk cannot be eliminated. Liability insurance covers the business for this risk.

For small businesses, many insurers package liability insurance into a larger insurance policy including property and casualty insurance. Most insurers call this packaged policy the “business owners’ policy” or BOP. Your business may be better served by a separate commercial general liability policy or CGL. The coverage afforded under both types of policies are almost always the same.

There are two types of liability policy:

Claims Made – The insurer that covers your business when the claim is made is the insurer that will cover the claim. If you are a construction or design professional, this is the most likely liability policy choice because it can be years after the completion of a project for a defect to become apparent.

Occurrence – The insurer that insures you at the time of the occurrence is the insurer that will handle the claim. The insurer is obligated to work with you until the claim is resolved even if you do not renew your policy with the insurer. These liability policies are more prevalent for businesses that would typically be aware of a potential claim immediately.

The two types of policies are the same with the exception of when the insurer’s obligation starts and ends.

The liability policy provides coverage for damage from an “occurrence” during the policy period. An “occurrence” generally means “accident” occurring to a third-party (someone other than you or the insurer). However, your liability policy may include a definition of “occurrence” to include “continuous or repeated exposure to substantially the same harmful conditions” that includes coverage for injury to a third-party for those kinds of injuries that cause damage over time. An example could be a gravel pit where a neighboring homeowner becomes ill due to a constant inhalation of gravel dust from the pit.

Дата добавления: 2014-12-23