PROPERTY & LIABILITY INSURANCE

1. FIRE & EXTRANEOUS PERILS INSURANCE

Fire Insurance is required to safeguard the policyholder’s Buildings if these are owned by the business, and in any event to protect the Contents of the premises such as Machinery, Equipment, Stock and Furniture against damages caused by Fire and/or Lightning.

Besides Fire and/or Lightning, loss or damage to property caused by natural disasters, Flood, Explosion, Riot and Strikes, Malicious Acts, Impact of Aircraft or Vehicle and/or Water Damage can be just as severe and such calamities are insured under a Standard Fire and Extraneous Perils Cover.

2. ALL RISKS INSURANCE

The basic Fire and Extraneous Perils cover is extended to an All Risks Insurance for buildings and other crucial contents such as plants and machinery, office equipment, stock, and miscellaneous items. This will also provide protection against any accidental loss or damage including theft or burglary and the policy is fit for industrial and commercial organization.

Instead of the policyholder choosing from the list of perils available for insurance, the “all risks” form includes all of the perils and accidental damage to the property insured. The perils insured against are not specified. Instead, the policy promises to pay for accidental damage or destruction to the property insured.

While the coverage is termed “All Risks” there are commonly excluded perils such as war, civil insurrection, nuclear risks, machinery breakdown risks, etc.

3. BUSINESS INTERRUPTION INSURANCE

The income of a business may be just as important to it as its buildings and contents. The business can safeguard its income lost following damage covered by a Fire Insurance Policy or an All Risks (Material Damage) Insurance Policy by arranging suitable Business Interruption Insurance.

A Fire Policy or an All Risks (Material Damage) Insurance only covers material damage to physical property, and would not cover consequential losses such as reduction in profit, an increase in costs of working, or provide cash to pay for normal ongoing expenses such as salaries and rent, all these are covered under Business Interruption Insurance Policy which is by experience shown to be a vital form of cover for Industrial and Commercial organizations to avoid being closed down permanently after suffering a fire or other serious calamity.

4. PUBLIC LIABILITY INSURANCE

A Public Liability Insurance Policy aims to indemnify the policyholder against the compensation and legal costs the policyholder may be legally liable to pay for accidents causing bodily injury, death, disease or illness to any one or damage to a third party’s material property, arising out of or in connection with the Business, and occurring during the period of insurance in Vietnam, elsewhere in the world in connection with commercial visits by directors or non-manual staff normally resident in and traveling from Vietnam. Cover is not available for activities conducted from overseas premises.

5. PRODUCTS LIABILITY INSURANCE

A Products Liability Insurance Policy covers legal liability for Bodily Injury or Damage occurring anywhere in the world caused by goods or products which the policyholder have supplied, sold, erected, repaired, altered, treated or installed in connection with and in the course of Business.

As a basic Public Liability Insurance Policy normally does not cover Products Liability, the latter liability can be covered by deleting the “Product Liability” exclusion in the Public Liability Policy, by a separate Products Liability Policy or a combined liability policy with two separate sections for Public & Products Liability. And it is not usual for an Insurer to offer products cover unless the policyholder holds the Public Liability Insurance.

6. MONEY INSURANCE

Money Insurance covers cash, cheques, any banks notes, currency notes, money orders, postal orders, current unused postage stamps etc while in transit, on the insured’s premises during business hours, out of business hours and not in a safe or strong room (nominal limit), in a bank night safe, in a locked safe or strong room out of business hours, in the private residence of any principal or an employees of the Insured (nominal limit), in the custody of collectors or travelers provided it is delivered to the Insured, banks or post office within 24 hours.

Coverage is on “all risks” basis, including theft and other accidental losses. Cover can be extended to include Damage caused by thieves to safes and strong rooms, Personal Accident benefits to employees or representative who may be attacked while handling or carrying money on behalf of the Insured, loss of or damage to employees’ clothing and personal effects in the course of theft or attempted theft, cost of opening safes or strong rooms following theft of keys.

7. FIDELITY GUARANTEE INSURANCE

Fidelity guarantees relate to situations where employees handle their employers’ money or other property, either by way of handling cash as a cashier or sale assistants does, or by way of being involved in record keeping, in a way that an accountant, computer operator or purchase manager does. Either way, it is possible for the employee to divert the employer’s money or property to somewhere it is not supposed to go – such as the employee’s pocket or bank account. This is the sort of fraud and dishonesty that is insured by a Fidelity Guarantee.

The cover applies during the currency of the policy, the “discovery period” – a period during which a theft committed during the currency of the policy and discovered up to 24 months after termination of the policy, or after the guilty party resigns, leaves the employment, or dies. The Insurance can also be extended to cover auditor’s fees incurred in substantiating the amount of the loss and the cost of rewriting or amending computer program to avoid future losses.

8. WORKMEN’S COMPENSATION INSURANCE

Workmen’s Compensation Insurance provides cover for employers for sums in respect of hospitalization expenses, disability sums and lost wages that the employers are liable to pay to injured employees under the Labor Code of Vietnam. As an employer, it is mandatory under the Law that the employees are fully protected against injury/death by accident or disease arising out of and in the course of employment.

This is insurance cover for work related accidents and/or diseases and while the employees are at the work place or moving to and from the work place, including whilst on business trips anywhere in Vietnam during his employment with the employer .

9. OFFICE & HOME MULTI RISKS INSURANCE

These two insurance policies are designed to protect the Policyholder against most perils that are likely to damage or destroy property belonging to the policyholder at Office and Private Residence.

In addition, public liability cover, money cover, personal accident benefits cover for office staff can be endorsed to the Office Multi Risks Policy while other miscellaneous perils covers can be endorsed to both policies.

Theft is also covered under both policies if there is physical evidence of break in.

10. PROFESSIONAL INDEMNITY INSURANCE

Professional Indemnity Insurance insures professional people (accountants, solicitors, architects and surveyors, Insurance or stockbrokers, doctors, dentists and other medical practitioners etc) or firms for their legal liabilities to third parties arising from their professional negligence or that of their employees i.e. the professional people can fail to exercise the skill and care that is expected of them – this skill and care is above and beyond the normal duty of care, resulting in loss to the client.