Liability Insurance A man was disabled after an industrial accident at a Chocolate bar factory. A shelf full of chocolate bars fell on him, but every time he shouted ‘the milky bars are on me’, everyone cheered. Happily, the factory owners had employers liability insurance, indemnifying them against the legal liability to compensate this man for bodily injury, death or damage to property incurred during the course of work. The disabled man could not longer pay his credit card bills, but had creditor insurance, which paid off the debt due to his inability to work. The shelf manufacturer had product liability insurance, indemnifying them against the legal liability to compensate third parties for bodily injury, death or damage to property caused as a result of negligent product design of manufacture. A clerical error during cleanup resulted in a large number of milky bars being dumped in an area of natural beauty. A local environmental group sued to chocolate bar factory, whose environmental liability cover indemnified them against legal expenses incurred, and the legal liability to cleanup and restore the environment to it’s prior state. The chocolate factory was closed due to the incident, but it’s owners had purchased business interruption insurance, which protected the loss of income caused by the factory being unable to manufacture and sell milky bars. The chocolate bar factory director failed to declare the incident to a private equity group who subsequently bought the factory. The private equity group sued him for this omission. The D&O cover paid for by the factory indemnified the director against the legal costs and indemnification due the private equity group for this wrongful act. The accountants who signed off the chocolate bar factory accounts failed to notice the missing revenue from the inedible milky bars. The private equity group sued them for professional negligence, but their professional indemnity cover indemnified them against the legal liability to compensate third parties, and the legal expenses of their professional ( but not illegal or fraudulent) negligence. The private equity group then went bankrupt, leaving the cocoa suppliers with an unpaid receivable. Their credit insurance indemnified them against the cost of the receivable owed by the now defunct private equity group. Although not needed the chocolate bar factory also had public liability insurance, indemnifying them against the legal liability to compensate third parties for damage to property, bodily injury and death for any circumstance not covered by other liability insurance. The cargo ship (and plane) ‘Milky Bar Kid’ was lost at sea, but the owners were indemnified against the legal liability to compensate the owners of the damage to (and loss of) cargo, the cost of wreck retrieval, and any legal expenses incurred. Finally, a red car and a blue car had a race, the driver of the red car was stuffing his face. This impaired his driving ability, causing an accident in which his third party motor insurance indemnified him against the legal liability to compensate third parties for damage to property, bodily injury or death caused by the operation of the motor vehicle.
Arf! Looks good to me. There are a few details here and there you might worry about. For example, the EL insurance would only pay out if the employer was negligent. The business interruption would kick in for defined perils, hopefully this incident would qualify ... And whoever heard of cocoa farmers in the depths of the Venezuelan jungle buying credit insurance! Overall, an amusing little descent into insanity the day before the exam. Well done.
