Under the Serious Accidents Punishment Act, provides combined cover for the civil and criminal litigation costs a responsible manager may face and the liability to victims and bereaved families.
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.
Serious accidents liability insurance covers, under the Serious Accidents Punishment Act (in force from 27 Jan 2022, extended to workplaces under 50 staff in 2024), when a serious industrial accident or serious citizen accident occurs, the business owner / responsible manager faces criminal-defence costs, civil liability and crisis-management costs.
Advances legal fees at the investigation and prosecution stage against the responsible manager personally.
Covers damages, consolation money and funeral costs to victims and bereaved families on the basis of the court's judgment.
Covers crisis-management costs immediately after an incident — PR, reputation recovery, investigation response.
Specialised in the responsible manager's personal risk, without overlap or gaps with workers'-compensation and CGL.
Workplaces of 50+ staff (from 2022) and under 50 staff (extended from 2024).
Subject to serious-citizen-accident rules — department stores, marts, lodging, medical facilities, transport, etc.
Businesses where management responsibility for franchisees and partners is at issue.
| Policy period | 1 year (Claims-Made basis) |
|---|---|
| Payment | Single (annual) payment |
| Insurers | AIG · Chubb · DB · Meritz · Hyundai |
| Channel | Individual consultation with our broker (010-5755-6465) |
| Turnaround | 5–10 business days (safety-and-health system review) |
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.
Common risk patterns in serious-accident response — a five-scenario self-check
The Serious Accidents Punishment Act extended its scope from workplaces of 50+ staff (from 2022) to those under 50 staff (from 2024).
Department stores, marts, lodging, medical facilities and transport are subject to serious-citizen-accident rules, where the responsible manager's liability can be in issue.
An incident at a franchisee or partner can also put the head office's or prime contractor's management responsibility in issue.
The Serious Accidents Punishment Act strengthens the responsible manager's personal criminal liability when a serious accident occurs.
Public procurement and large contracts often require a serious-accident response system, so risk management is needed.
The most common misconception about serious accidents liability insurance is the idea that “we have workers' comp and general liability, so serious accidents are covered too.” The Serious Accidents Punishment Act imposes heightened criminal liability on the “responsible manager personally” when a serious industrial or citizen accident occurs. Workers' comp handles statutory compensation to workers, and employers'-liability and CGL handle the civil liability of the employer and facility — but none of them handles the defence costs of responding to the criminal investigation and prosecution the responsible manager personally faces. Serious accidents liability insurance specialises in exactly this — “the responsible manager's personal criminal-defence costs” and civil liability to victims and bereaved families — without overlap or gaps with workers'-comp and general-liability cover.
Source: (standard insurance-textbook scenario)
The wording and structure points decision-makers most often overlook
Workers' comp, employers' liability and CGL handle worker compensation and the civil liability of the employer and facility. The responsible manager's personal criminal-defence costs are separate, and serious accidents liability insurance specialises in them.
The Act regulates both serious industrial accidents (affecting workers) and serious citizen accidents (affecting the public). Check which type of risk your business is exposed to.
Check in the wording from when and how far defence costs are advanced at the early investigation and prosecution stage against the responsible manager.
The questions asked most when considering serious accidents liability insurance
It covers the criminal-defence costs the responsible manager bears when a serious industrial or citizen accident occurs under the Serious Accidents Punishment Act, and the civil liability for damages to victims and bereaved families.
Workers' comp handles statutory compensation to workers, and employers'-liability and CGL handle the civil liability of the employer and facility. The criminal liability the Act imposes on the responsible manager personally, and its defence costs, are not handled by those policies, so this is prepared for separately.
The Act extended its scope from workplaces of 50+ staff to those under 50 staff. Multi-use facilities such as department stores, marts, lodging, medical facilities and transport are also subject to serious-citizen-accident rules. Whether it applies depends on business size and type, so this should be checked.
No. Insurance does not replace or exempt criminal punishment itself. Serious accidents liability insurance covers defence costs at the investigation and prosecution stage and civil liability for damages; it does not substitute for the consequences of criminal liability.
An incident at a franchisee or partner can put the head office's or prime contractor's management responsibility in issue. Cover should be designed to match your scope of management responsibility.
The insurer calculates it based on sector and industrial-accident risk, workplace size and number of workers, whether it is a multi-use facility, the limit and endorsement structure, and past incident history. The exact premium and terms are confirmed after underwriting by insurers such as AIG, Chubb, DB, Hyundai, KB and Meritz.
