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Contractual Liability (Insurance)
"I need a Contractual Liability Insurance policy for my construction company operating in Hong Kong, with coverage of HKD 50 million, specifically covering subcontractor agreements and project delivery commitments starting from March 2025."
1. Parties: Identification of the insurer and the insured party, including full legal names and registered addresses
2. Background: Context of the insurance arrangement and brief description of the insured's business activities
3. Definitions: Detailed definitions of key terms used throughout the policy
4. Scope of Cover: Detailed description of what contractual liabilities are covered under the policy
5. Policy Period: Duration of the insurance coverage, including start and end dates
6. Limit of Liability: Maximum amount payable under the policy, including any sub-limits
7. Premium and Payment Terms: Premium amount, payment schedule, and consequences of non-payment
8. Exclusions: Specific circumstances, activities, or losses that are not covered under the policy
9. Claims Procedure: Process for notifying and filing claims, including time limits and required documentation
10. General Conditions: Standard policy conditions including cancellation rights, jurisdiction, and governing law
11. Duties and Obligations: Responsibilities of both the insurer and insured during the policy period
12. Dispute Resolution: Procedures for handling disputes, including mediation and arbitration provisions
1. Retroactive Coverage: Used when coverage needs to extend to contractual liabilities arising from events before the policy start date
2. Extended Reporting Period: Optional extension of the period for reporting claims after policy expiration
3. Cross-Liability Clause: Added when coverage needs to apply separately to multiple insured parties
4. Specific Contract Coverage: Used when specific contracts need to be explicitly covered or excluded
5. Defense Costs: Optional section detailing how legal defense costs are handled and if they're included within or in addition to the limit of liability
6. Territorial Limits Extension: Added when coverage needs to extend beyond Hong Kong
7. Sanctions Clause: Required when dealing with international contracts or parties
1. Schedule of Covered Contracts: Detailed list of specific contracts covered under the policy
2. Schedule of Premium Calculations: Breakdown of premium calculation including any adjustable elements
3. Schedule of Sub-limits: Detailed breakdown of sub-limits for different types of contractual liabilities
4. Schedule of Endorsements: List and details of all endorsements attached to the policy
5. Appendix A - Claims Reporting Forms: Standard forms and procedures for reporting claims
6. Appendix B - Risk Management Requirements: Specific risk management procedures the insured must follow
7. Appendix C - Excluded Contracts: List of specific contracts or types of contracts excluded from coverage
Authors
Construction and Engineering
Financial Services
Professional Services
Manufacturing
Technology and Software
Logistics and Supply Chain
Real Estate and Property Development
Healthcare
Retail and Distribution
Telecommunications
Infrastructure Development
Consulting Services
Legal
Risk Management
Finance
Compliance
Operations
Procurement
Commercial
Insurance
Treasury
Claims
Contracts Administration
Project Management
Risk Manager
Chief Financial Officer
Legal Counsel
Compliance Officer
Contract Manager
Insurance Manager
Chief Operating Officer
Project Manager
Commercial Director
Operations Manager
Treasury Manager
General Counsel
Claims Manager
Procurement Manager
Business Development Director
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