REGISTRATION DOCUMENT AND FINANCIAL REPORT - Iliad

4. RISK FACTORS
4.5 RISKS RELATING TO CLAIMS AND LITIGATION
Pursuant to the same order, claims of forgery and use of forged documents, attempted fraud and reporting an
imaginary crime filed against Fernand and Jean-Christophe Develter were referred to the Tribunal Correctionnel,
Fernand Develter being considered as the instigator of the action and the economic beneficiary of Wal Services.
4.6 INSURANCE AND RISK COVERAGE
The Group’s strategy is to obtain insurance from external sources to cover the risks which can be insured at
reasonable cost. Its current insurance policies cover Group companies’ assets and third party liability, under
standard terms.
The cost of Iliad’s insurance cover for all Group companies came to approximately €1.7 million in 2007,
representing all the insurance premiums paid. In order to obtain the best possible coverage for all the Group’s
companies, Iliad uses the services of its online insurance brokerage company, Assunet, which negotiates the
insurance policies on its behalf.
The Group’s main policy covers third party liability in the event of fire as required by France Télécom in respect
of its occupancy of the co-location facilities. The roll-out of the FTTH network is covered by a principal
contractor’s liability insurance policy. The Group has taken out specific insurance policies to cover the operation
of the active and inactive telecommunications network. Its business as a fixed-line telephony operator is covered
by a professional liability insurance policy.
The Group has also taken out a certain number of insurance policies to cover property damage and equipment
breakage at all locations where its equipment is housed (Points of Presence, subscriber connection nodes, optical
nodes), and at the head office. In addition, in March 2007, the Group renewed the directors’ and officers’ liability
insurance policy taken out in March 2005 which covers all forms of such liability claims. Iliad considers that this
insurance cover takes into account the nature of the risks incurred by Group companies and matches the scope of
other insurance cover currently available on the market for groups of a similar size and with similar business
activities.
The table below sets out the coverage levels under each of the above-mentioned policies.
Third party liability – France Télécom
Comprehensive cover (bodily injury, property damage and consequential loss) .................... €76,225,000
Third party liability – City of Paris
Operational liability Per claim
Bodily injury ..................................................................................... € 8,000,000
Property damage and consequential loss .......................................................... € 1,524,491
Third party liability – Operation of the Telecommunications Network in France
Bodily injury ..................................................................................... € 7,622,500
Property damage and consequential loss .......................................................... € 1,525,000
Professional liability
Professional liability and/or completed operations liability ........................................ € 3,100,000
Third party liability and property damage (rue de la ville l’Evêque site)
Third party liability related to occupancy ......................................................... €11,436,676
Additional operating costs ........................................................................ € 3,400,000
Property damage ................................................................................. € 762,250
Third party liability and property damage (Bezons site)
Tenant’s risks .................................................................................... € 2,500,000
Industrial risks .................................................................................... €30,000,000
Directors’ and officers’ liability
Amount of coverage per insurance period ......................................................... €15,000,000
12 - Iliad – Registration Document 2007