Public Liability Insurance

Business entities while addressing to 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 the compensation. As a prudent businessman, there is an urgent need for taking out the Public Liability Insurance policy to take 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 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).

The policy offers a benefit of Retroactive period on continuous renewal of policy whereby claims reported in subsequent renewal but pertaining to earlier period after first inception of the policy, also become payable. This is a mandatory policy to be taken by owners, users or transporters of hazardous substance as defined under Environment (Protection) Act 1986 in excess of the minimum quantity specified under the Public Liability Insurance Act 1991.

Public Liability Insurance covers the legal liability of industrial and non-industrial establishments arising out of such events. 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 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.