Public Liability Insurance
Business entities while addressing their day-to-day commitments/obligations, are exposed to claims from third parties. Since the legal costs will usually outweigh the premium costs, as a prudent business entity, it is recommended to procure this policy.
All business entrepreneurs and entities today are exposed to civil liability claims arising due to negligence and courts awarding huge sums as compensation. As a prudent businessman, there is an urgent need for taking out the Public Liability Insurance policy to take care of such liability aspects.
Public liability insurance protects you and your business against the financial risk of being found liable to a third party for death or injury, loss or damage of property, or ‘pure economic’ loss resulting from your negligence. The legal cost and expenses incurred in defending the case with the prior consent of the insurance company are also payable subject to certain terms and conditions. This type of insurance will only cover third party claims (i.e. not your own employees).
Public Liability Insurance Policy offers you the benefit of Retroactive period on continuous renewal of policy whereby claims reported in subsequent renewal but pertaining to earlier period after the first inception of the policy, also become payable.
There two different products (Liability policies). One is Public Liability Insurance Act policy and the other is a normal public liability policy.
Public Liability Insurance Act policy is a mandatory policy to be taken by owners, users, or transporters, or any type of handlers of a hazardous substance as defined under the Environment (Protection) Act 1986. Compensation under this policy is fixed and claims administration is done by district revenue authorities.
The normal Public Liability policy covers the legal liability of industrial and non-industrial establishments arising out of such events. Of their day to day business activity.
The policy covers businesses against:
• Legal liability of the insured towards damages to the third party in respect of accidental death, bodily injury, or loss of or damage to property.
• Legal costs and expenses incurred by the Insured with the prior consent of the Company.
The Public Liability Policy can be extended to cover legal expenses arising out of
• Sudden and Accidental Pollution.
• Act of God Perils.
• Transportation.
• Carriage of treated effluents etc.
Add on covers under the Policy are:
• Food and Beverages.
• Lift third party damages.
