Tribhuvan University
Faculty of Management
Office of the Dean
Bachelor of Business Management (BBM)
Course Description
:This course covers fundamental concepts of comm ercial liability, types of liability risks, and mechanisms for managing commercial liability exposures through insurance. It includes detailed study of commercial general liability policies, specialized liability coverages, professional liability policies, and umbrella/excess liability contracts. The course also introduces emerging liability risks, alternative risk financing methods, and regulatory frameworks governing commercial liability insurance.
Course Objective
:The primary objective of this course is to familiarize students with the principles, tools, and practices of commercial liability risk management. It further aim s to develop students’ ability to analyze liability exposures faced by commercial enterprises and to evaluate suitable liability insurance solutions available in Nepal and internationally. Course Description This course covers fundamental concepts of comm ercial liability, types of liability risks, and mechanisms for managing commercial liability exposures through insurance. It includes detailed study of commercial general liability policies, specialized liability coverages, professional liability policies, and umbrella/excess liability contracts. The course also introduces emerging liability risks, alternative risk financing methods, and regulatory frameworks governing commercial liability insurance.
Course Contents:
Lecture hours show the approximate classroom time allocated to each unit.
Unit 1. Introduction
- Concept and importance of commercial liability
- Nature and sources of commercial liability risk
- Personal liability vs c ommercial liability
- Structure of the commercial liability insurance market in Nepal
- Role of insurers, reinsurers, brokers, and regulators in liability risk management.
Unit 2. Commercial Liability Risk
- Legal foundations related to commercial liability (civil, contractual, tort, statutory liabilities)
- Scope and classification of commercial liability
- Types of commercial liability exposures (premises, opera tions, product, completed operations, contractual, cyber, environmental, employment-related, etc.)
- Methods and tools for assessing and evaluating liability risks
- Liability risk from the perspectives of the insured and the insurer
- Trends in commercial li ability claims in Nepal
Unit 3. Commercial Liability Insurance
- General liability loss exposures
- Commercial general liability policy
- Employment related practices liability insurance
- Workers compensation insurance
- Commercial auto insurance
- Aircraft insurance
- Underwriting of c ommercial liability, Ratemaking of c ommercial liability p olicy
- Claims handling and settlement procedures in liability insurance
Unit 4. Commercial Umbrella Policy and Professional Liability Insurance
- Concept, featur es, and need of commercial umbrella/excess liability policies
- Cyber liability insurance, Businessowners Policy (BOP) and its liability components
- Professional l iability insurance: Doctors, Engineers & Architects, Accounts &auditors, Lawyer, and Directors &
- Officers Liability Insurance.
Unit 5. Emerging Issues in Commercial Liability Risk Management
- Emerging global liability threats and trends
- Cybersecurity and data privacy liability
- Environmental and pollution liability
- Product liability in the d igital economy (AI, IoT, e - commerce)
- Social inflation and its impact on liability claims
- Cross-border liability risks for multinational companies, Role of reinsurance in managing catastrophic liability losses.
Unit 6. Regulatory and Governance Framework in Nepalese Liability Insurance
- Overview of Nepal Insurance Authority (NIA) regulations related to liability insurance
- Compliance requirements for insurers offering liability products
- Mandatory liability insurance requirements in Nepal (motor third -party, aviation, professional requirements, etc.)
- Corporate governance and ethical issues in liability risk management
- Policy documentation, disclosure, and reporting requirements
- Challenges in developing commercial liability markets in Nepal.
- Suggest ed Readings Rejda, G. E. Principles of Risk Management and Insurance. New Delhi: Pearson Education.
- Vaughan, E. J. & Vaughan, T. M. Fundamentals of Risk and Insurance . New York: John Wiley
- & Sons.
- Mishra, M. N. & Mishra, S. B. Insurance Principles and Practices. Delhi: S. Chand & Company
- Ltd.
- Harrington, S.E. & Niehaus, G.R. Risk management and insurance. New Delhi: McGraw Hill
- Education (India) Pvt Ltd.
- Gupta, P. K. Insurance and Risk Management. Mumbai: Himalaya Publishing House Government of Nepal, Insurance Act, 1992 and Insurance Regulation, 1993.
- Directives, guidelines, policies issued by Nepal Insurance Authority.