LEGRAND / 2018 Registration document

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

INTERNAL CONTROL AND RISK MANAGEMENT

INSURANCE POLICIES AND RISK COVERAGE

3.7 – INSURANCE POLICIES AND RISK COVERAGE

Legrand has taken out global insurance policies to cover its assets and income from identifiable and insurable risks. Working closely with brokers, it seeks the insurance market’s most appropriate solutions that offer the best value for money in terms of coverage. The major risks incurred by the Group across all its operating activities are covered by a risk and insurance management policy centralized at headquarters. Insurance programs are arranged with highly reputed and financially sound international insurance companies without recourse to a captive reinsurance structure. These policies provide global coverage for the Group and take into account the specific risks and activities related to the Group’s operations, including property damage and the resulting business interruption, and product liability.

Legrand intends to continue its practice of maintaining global insurance programs where practicable, increasing coverage where necessary and reducing insurance costs through prevention and risk protection methods and through self-insurance (using appropriate deductibles). Legrand believes that the coverage offered by these insurance programs is adequate in scope, amounts insured and coverage limits. The Group regularly reviews its insurance coverage with the help of its brokers. The Group’s insurance and risk management policy and related prevention programs are periodically presented to the Risk Committee by the Legal Department (and to the Audit Committee as part of its annual review of the Group’s main risks).

3.7.1 – Civil liability

The global, integrated civil liability program covers possible claims arising from the Group’s liability for physical injury, property damage and consequential loss arising during production or after product

delivery, as well as damage arising from accidental pollution. More specifically, it covers the costs of product removal/reinstallation, withdrawals or recalls.

3.7.2 – Property damage and business interruption insurance

Subject to the usual excesses, exclusions and limits, the Group’s property/casualty and business interruption insurance program covers direct damage to property arising from any unexpected and accidental event (such as fire, storm, explosion, electrical damage, water damage, etc.) affecting the insured property, as well as the resulting business interruption.

In addition to this insurance program, and as mentioned in section 3.6.2.7 of this registration document, Legrand has an active industrial and logistics risk prevention policy, and intends to continue risk awareness and prevention campaigns in its operating entities.

3.7.3 – Other cross-functional risks insured

The Group’s other main insurance programs cover the following risks: D&O (Directors’ and Officers’) liability, employer liability, credit insurance, and attacks on its IT systems and data.

74

LEGRAND

REGISTRATION DOCUMENT 2018