INTRODUCTION TO THE CAPGEMINI GROUP

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2. INTRODUCTION TO THE CAPGEMINI GROUP
out-of-court settlement of claims, without exposing the Group
as a whole to significant financial risk.
Commercial general liability and professional indemnity
This type of coverage, which is very important to clients, is taken
out and managed centrally at Group level. Cap Gemini S.A.
and all subsidiaries over which it exercises direct or indirect
control of more than 50% are insured against the financial
consequences of commercial general liability or professional
indemnity arising from their activities, under an integrated
global program involving a range of lines contracted with a
number of highly reputable, solvent insurers. The terms and
conditions of this program, including limits of coverage, are
periodically reviewed and adjusted to reflect changes in the
Group’s activities, the position on insurance markets and risk
exposures.
The primary layer of this program, totaling €30 million, is
reinsured through a consolidated reinsurance subsidiary which
has been in operation for several years.
Property damage and business interruption
The Group has implemented a worldwide integrated property
damage and business interruption insurance program covering
all of its subsidiaries worldwide. Its policy is to rent rather than
to buy its business premises, and consequently it owns little
property. Capgemini’s business premises are located in a wide
variety of countries, and the Group operates at multiple sites
in most of them. With an average surface area of 2,500 square
meters, these premises concern almost 500 companies. Some
of the Group’s consultants work off-site at client premises. This
geographical dispersion limits risk, in particular the risk of loss
due to business interruption, arising from an incident at a site.
The biggest outsourcing site, which has disaster recovery plans
in place to ensure continuity of service, represents less than
4% of Group revenues. The Group’s largest site, which is located
in India, employs some 6,000 people in a number of different
buildings. No building at any of the Group’s sites houses more
than 2,000 employees.
Other risks
Travel assistance and repatriation coverage for employees
working outside their home countries, and crime and fidelity
coverage (especially for information systems) are managed
centrally at Group level via global insurance policies. All other
risks – including motor vehicle, transport and employer liability
– are insured locally using policies that reflect local regulations.
The Group has decided not to insure against employment
practices liability risks, given its preventive approach in this area.
Pollution risks are low in an intellectual services business, and
Capgemini is not insured against these risks in any countries
in which it operates. The Group has also decided that, unless
coverage is compulsory and readily available, it is not necessary
to systematically insure against terrorism-related risks. Certain
risks are excluded from coverage under the general conditions
imposed by the insurance market.
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REFERENCE DOCUMENT 2010 CAPGEMINI