Are Indian BPOs purchasing liability insurance?
IT and BPO companies were exposed to an intensely litigious international environment. This was one of the major factors that was driving their purchase of such policies. The insurance placements were entirely made with insurers that had international ratings above `BBB’ assigned by globally recognised ratings agencies.
More mid-size companies were also taking cover, as they were driven by the outsourcing revenue models of foreign companies. Among the major risks Indian companies face from these entities are glitches in software products, including deviations from product specifications and issues relating to breach of contractual deadlines. The cover against such risks all constituted liability cover.