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Corporate legal liability - ForeFront Plus
Chubb Specialty Insurance

PURPOSE: To insure companies for defence costs and legal liability incurred on account of claims and prosecutions against them for a wide range of wrongful acts, errors or omissions. Also to insure them for representation costs in investigations by the Health and Safety Executive and for defence costs for Corporate Manslaughter and Corporate Homicide actions.

Key cover features:

  • Defence costs cover (but not Liability cover) for claims:
    • for copyright and other intellectual property infringements (subject to sublimit)
    • arising from public offerings of securities (subject to sublimit)
    • arising from contractual obligations (subject to sublimit)
    • arising from pollution or contamination (subject to sublimit)
    • for personal injury or property damage (subject to sublimit)
    • for failure to provide adequate service or advice (subject to sublimit)
  • Cover for legal representation fees in Health and Safety Executive investigations (and Irish equivalent) (subject to sublimit)
  • Cover for defence costs in prosecutions under the Corporate Manslaughter and Corporate Homicide Act 2007
  • Cover for the defence costs in other health and safety prosecutions in the UK and Ireland (subject to sublimit)
  • Cover for defamation claims
  • Advancement of defence costs as and when incurred
  • No avoidance or rescission for misrepresentation or non-disclosure (not even for fraudulent misrepresentation or non-disclosure). However, cover limitations for organisations where particular persons knew of the non-disclosure or misrepresented facts
  • Punitive, exemplary, liquidated and aggravated damages, and the multiple portion of any multiplied damages award, not excluded
  • Broad acquisition cover for new subsidiaries: in many cases automatically covered; new subsidiaries above certain thresholds must be reported to Chubb
  • Private placements of securities not excluded
  • Emergency defence costs can be incurred without Chubb consent

Here are a few examples of when the company may need corporate liability cover:

Water contamination
A company carries on business, not realising that the solvent perchlorothene is seeping through its floor into the water table. It is then sued by the water authority.

Passing off
Company A packages its hair care product in a similar coloured container to that of a popular hair care product by Company B. B sues A, accusing it of acting as if its product was the same one as Company B’s. This is an intellectual property infringement known as “passing-off”.

No title to machinery
A company buys a business and assets from another company, including an expensive piece of machinery which turns out not to be the seller’s. The true owner sues the buyer for improperly detaining the machine.

Intellectual Property
A company used a name which was a registered trademark of another company in a totally different industry. Notice was served in the Chancery Division, Intellectual Property, alleging improper use of domain name, web address and title. Defence costs came to £33,000.

Trespass
A company installs pipes under its land, cutting across the route that a neighbour has the right to run cables along.

The neighbour sues for the infringement

Corporate legal liability cover with Forefront will mean your defence and, if applicable, damages costs are met. Some of the cover may be subject to a sublimit.