Liability Insurance Agreement Template for England and Wales

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Key Requirements PROMPT example:

Liability Insurance Agreement

"I need a Liability Insurance Agreement for my manufacturing company to cover product liability and workplace accidents, with coverage limits of £5 million and operational territory across the UK and EU, starting from March 2025."

Document background
The Liability Insurance Agreement serves as the primary document establishing liability coverage protection for businesses and individuals under English and Welsh law. This contract type is essential for managing risk and ensuring financial protection against third-party claims. It outlines specific covered risks, exclusions, policy limits, and claims procedures while ensuring compliance with the Insurance Act 2015 and FCA requirements. The agreement is particularly crucial in today's litigious business environment, providing clarity on coverage terms and claim resolution processes.
Suggested Sections

1. Parties: Identification of insurer and insured, including full legal names and addresses

2. Background: Context and purpose of the insurance agreement, including basis of contract

3. Definitions: Key terms used throughout the agreement, including insurance-specific terminology

4. Coverage: Scope of insurance coverage, limits, and conditions of liability

5. Premium and Payment Terms: Insurance premium details, payment schedule, and consequences of non-payment

6. Claims Procedure: Process for making and handling claims, including notification requirements

7. Duration and Termination: Policy period, renewal terms, and conditions for termination

8. General Terms: Standard contractual provisions including notices, amendments, and entire agreement

Optional Sections

1. Excess/Deductible: Details of policyholder's contribution to claims, applicable when policy includes an excess requirement

2. Territory and Jurisdiction: Geographical scope of coverage and applicable law, used for international coverage

3. Subrogation Rights: Insurer's right to pursue third parties, included when recovery rights are relevant

4. Sanctions Clause: Compliance with international sanctions, required for international coverage

Suggested Schedules

1. Schedule 1 - Covered Risks: Detailed list of insured risks, exclusions, and limitations

2. Schedule 2 - Premium Schedule: Detailed payment schedule, amounts, and payment methods

3. Schedule 3 - Claims Procedures: Detailed procedures for claims processing and required documentation

4. Schedule 4 - Policy Endorsements: Any modifications or additions to standard coverage terms

5. Appendix A - Policy Conditions: Standard policy conditions and requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant Industries
Relevant Teams
Relevant Roles
Industries

Insurance Act 2015: Primary legislation governing insurance contracts, including duty of fair presentation, warranties and terms, and remedies for fraudulent claims

Consumer Insurance (Disclosure and Representations) Act 2012: Legislation governing insurance contracts where the insured party is a consumer, focusing on disclosure requirements and representations

Third Parties (Rights against Insurers) Act 2010: Legislation enabling third parties to claim directly against insurers in certain circumstances

Financial Services and Markets Act 2000: Establishes regulatory framework for insurance businesses and financial conduct requirements

FCA Handbook: Regulatory guidelines including Insurance Conduct of Business Sourcebook (ICOBS) and Principles for Businesses

PRA Requirements: Prudential Regulation Authority requirements governing capital and solvency requirements for insurers

Doctrine of Utmost Good Faith: Common law principle (uberrimae fidei) requiring highest standard of good faith between insurer and insured

Data Protection Act 2018: Legislation governing the handling and protection of personal data, including UK GDPR requirements

Enterprise Act 2016: Legislation containing provisions regarding late payment of insurance claims

Consumer Rights Act 2015: Legislation protecting consumer rights, relevant for consumer-facing insurance contracts

Marine Insurance Act 1906: Historic legislation still relevant for certain insurance principles and marine insurance matters

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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