Backdated Liability Insurance & Your Business
Every decision you make as a business leader has the potential to impact your bottom line. Across Canada, ALIGNED advocates are committed to helping you make informed decisions about potential insurance coverage options such as backdated liability insurance. The International Risk Management Institute (IRMI) defines this unusual form of insurance as:
“Coverage procured for claims after a loss event has actually happened. This type of coverage is offered when the amount of the claim is very uncertain and potentially long delays in payment may result. The premium charged by the insurer, coupled with its investment value, is calculated to be sufficient to cover all the claims from the incident. This is not a commonly available type of coverage. See also Retroactive insurance; Loss mitigation underwriting.”1
What Might Backdated Liability Insurance Address?
A typical backdated liability insurance is usually a commercial general liability policy that provides coverage for claims of bodily injury or another physical injury, personal injury (libel or slander), advertising injury and property damage as a result of your products, premises or operations. Backdated liability insurance can be offered with other coverages such as property, crime, automobile, etc. as part of a package policy.
As a safeguard against liability, general liability insurance enables you to continue your normal operations while dealing with real or fraudulent claims of negligence or wrongdoing. General liability insurance policies also provide coverage for the cost to defend and settle claims. Here is more detail about what a typical general liability insurance policy may cover:
- Automatic Additional Insured – Coverage is provided for written contracts, agreements and permits.
- Tenants Legal Liability – Coverage for property damage your organization causes to a premises owned by others.
- Defence Costs – Provides coverage for legal expenses for liability claims brought against your business, regardless of who is at fault.
- Products Liability – Provides coverage for bodily injury and property damage sustained by others as a result of your products.
- Medical Expenses – Provides coverage for medical expenses if someone is injured on your premises or by your products.
- Occupiers and Operations Liability – Provides coverage for bodily injury and property damage sustained by others on your premises or in conjunction with your business operations.
- Personal and Advertising Injury – Protects against offences made by you or your staff during the course of business, such as libel, slander, disparagement or copyright infringement in advertisements.
Talk To Us About Backdated Liability Insurance For Your Business
While this form of business insurance is not readily available in the Canadian marketplace, a few insurers will consider it on a case-by-case basis. An ALIGNED advocate can help you evaluate available insurance options and secure the best products, services and solutions for your business.
|ALIGNED Across Canada
100% Canadian owned, ALIGNED is a premiere insurance brokerage that serves more than 1,400 clients across the country. ALIGNED’s offices in Toronto, Calgary and Vancouver are supported by a national operations centre in Cambridge, Ontario. Uniquely within the industry, ALIGNED creates, negotiates and delivers the best business insurance and risk management strategies/solutions to organizations like yours.
Source: 1 IRMI