A professional-indemnity (E&O) product specialised for designated safety-inspection bodies (KOLAS, KTL, KETI and the like) under the Electrical Appliances and Consumer Products Safety Control Act, covering the liability arising from an inspection error or a wrong determination.
N2N Insurance Brokerage does not represent any single insurer — it independently represents the client as an FSS-registered broker (Reg. No. 2026-012201). We compare the wordings, rates and service of AIG · Chubb · DB · Hyundai · KB · Meritz to propose the cover and price best suited to your risk. Each insurer's full wording is provided at application and binding.
A professional-indemnity (E&O) product specialised for designated safety-inspection bodies (KOLAS, KTL, KETI and the like) under the Electrical Appliances and Consumer Products Safety Control Act, covering the liability arising from an inspection error or a wrong determination.
Nationally accredited testing bodies.
KTC, KTL, KETI and the like.
Electrical / electronic KC certification.
| Post-market | Retroactive cover for an accident after certification |
|---|---|
| Global scheme | Link with IEC / CB Scheme |
| Policy period | 1 year (claims-made) |
|---|---|
| Insurer | Hyundai |
| Limit | KRW 0.5bn–5bn per claim |
| Turnaround | 2–4 weeks |
| Channel | Individual consultation with our broker (010-5755-6465) |
If the insured event has already occurred at the time the contract is made, the contract is void. However, where the contract is void due to the company's intent or negligence, or where the company knew or could have known of the nullity before acceptance yet did not refund the premium, the company refunds the premium with interest at the policy-loan rate published by the Korea Insurance Development Institute, compounded annually, for the period from the day after payment to the day of refund.
The specific losses not covered (exclusions) are set out in each insurer's policy wording and product description; on this page, see the “Cover” tab(or the “Losses not covered” section) for the main exclusions. For other cover-specific grounds on which claims are not paid, please refer to the policy wording.
The company provides cover, in accordance with the policy, from the time it accepts the application and receives the first premium. Where the company accepts the application after receiving the first premium with it, cover also begins from the time the first premium was received.
The application must be completed by the policyholder, and the policyholder and the insured must sign it by hand. Failure to sign by hand may result in disadvantages regarding the validity of the contract. On an internet cyber-mall, an electronic signature may be used instead.
The policyholder has the right to be given and have explained the information needed about the product they wish to buy.
The insurer and N2N Insurance Brokerage must explain the important matters of the product to ordinary financial consumers.
When applying, the policyholder, the insured or their agent must disclose truthfully the facts they know regarding the questions in the application (including the questionnaire). Otherwise the claim may be declined or the contract cancelled. Where insurance is taken out by telephone or other means of communication, the duty is performed by answering the seller's questions, which are recorded, without a separate written questionnaire, so answers must be given with particular care.
If, after the contract is made, any of the following arises in respect of the subject-matter insured, the policyholder or the insured must notify the company in writing without delay and obtain endorsement on the policy.
The surrender value is the amount paid if the contract is cancelled early. Unlike bank savings, insurance combines risk protection and savings: part of the premium is paid out as claims to other policyholders who suffer accidents, and part covers the insurer's operating expenses, so the surrender value on early cancellation may be less than the premiums paid, or nil.
Under Article 59-4(1) of the Income Tax Act (special tax credit), for protection-type insurance taken out by an employee only, a tax credit of 12% of the premium paid (capped at KRW 1 million per year) is available. Tax matters may change with amendment or repeal of the relevant tax law.
Except as provided by law, the insurer and N2N Insurance Brokerage do not collect, use, inspect or provide personal data related to this contract — for its conclusion, maintenance and claim payment — without the consent of the policyholder, the insured or the beneficiary. However, for those purposes the insurer may, with the consent of the policyholder and the insured and in accordance with law, provide personal data to other insurers and insurance-related bodies.
The above is a summary and excerpt of the policy wording; for grounds on which claims are not paid and other details, please refer to the policy wording and product description.
Risk patterns that come up often in inspection and certification work — a five-scenario self-check
An error or omission in inspection or certification can lead to a defective product entering the market, creating the inspection body's liability.
Testing and inspection carried out in a nationally accredited capacity carry responsibility for the reliability of the result.
An error in the safety inspection of electrical appliances can produce results directly tied to consumer safety.
A certificate-issuance error becomes the basis for product distribution and can lead to wide-ranging harm.
Inspection linked to an international scheme has results that reach overseas, widening the scope of risk.
Safety-inspection-body professional liability shares its starting point with ordinary professional indemnity (E&O), but it is specialised for the risk of a "statutory inspection body". If an error or omission in inspection or certification lets a defective product reach the market, consumer harm, the resulting secondary compensation, and even a manufacturer's recourse claim can all reach the inspection body. This insurance covers such loss from an inspection or certificate-issuance error, together with defence costs. But a wilful or fraudulent inspection, operation in breach of certification standards, and an inspection carried out knowing of the inspected party's deception are within the exclusions. The starting point is that it addresses the inspection body's "negligence" and does not protect misconduct.
Source: (General industry example)
The wording and structure points decision-makers most often overlook
An inspection error does not stop between the inspection body and the manufacturer; it can widen into secondary consumer harm from the defective product and a manufacturer's recourse claim.
There can be a gap between the time of inspection/certification and the time of the accident. Check whether the design covers, retroactively, an accident occurring after certification.
A wilful or fraudulent inspection, operation in breach of certification standards, and an inspection carried out knowing of the inspected party's deception are excluded. This insurance covers the inspection body's negligence.
The questions decision-makers ask most when considering safety-inspection-body professional liability insurance
The starting point is the same, but it is specialised for the risk of a statutory safety-inspection body. It handles risks specific to inspection bodies — consumer harm from a defective product entering the market through an inspection or certification error, liability for a certificate-issuance error, and responding to a manufacturer's recourse claim.
It covers harm from a defective product distributed through an inspection error, liability for a certificate-issuance error, secondary consumer-harm compensation, response to a manufacturer's recourse claim, and defence costs.
There can be a gap between the time of inspection or certification and the time of the accident. Check whether the design covers, on a retroactive basis, an accident that occurs after certification.
Exclusions include a wilful or fraudulent inspection, operation in breach of certification standards, an inspection carried out knowing of the inspected party's deception, and war/nuclear-related loss.
An inspection linked to an international certification scheme such as IEC/CB Scheme has effects that reach overseas. Check whether the related risk is within the scope of cover.
The insurer assesses it on the annual number of inspections and the risk of the inspected items, the limit and endorsement structure, and past claim history. The exact premium and acceptance terms are confirmed after underwriting by insurers such as AIG, Chubb, DB, KB, Meritz and Hyundai.
