Public Liability Insurance safeguards your business from the financial risks associated with being held responsible for third-party death, injury, property damage, or economic loss resulting from your negligence.

Scope

There are three types of Public Liability Policies available:

  1. Public Liability Non-Industrial Risk – Suitable for offices, hotels, cinemas, hospitals, schools, etc.
  2. Public Liability Industrial Risk – Applicable for godowns, warehouses, and factories.
  3. Public Liability Insurance Act 1991 – A mandatory policy for owners, users, or transporters of hazardous substances as defined under the Environment (Protection) Act 1986, exceeding the specified minimum quantity outlined in the Public Liability Insurance Act 1991.

Key Benefits

  • Covers your financial liability for third-party accidents caused by your business activities.
  • Provides coverage for financial liabilities arising from accidental damage to public property or life due to your business.
  • Allows you to continue operations without concern over financial liabilities.
  • Covers legal costs for defending the case.

Coverages

  • Legal liability for damages to third-party life or property.
  • Legal costs and expenses incurred by the insured, with prior consent from the company.
  • Accidental death and bodily injury.

Add-on Covers

  • Pollution Cover
  • Transportation Cover
  • Technical Collaborators Liability
  • Effluents Risk: Covers the transport of effluents outside the premises
  • Coverage for natural calamities like floods, earthquakes, etc.

Exclusions

The policy does not cover liability arising from:

  • Earthquakes, earthquakes, volcanic eruptions, floods, storms, typhoons, hurricanes, tornadoes, cyclones, or any other similar natural disasters or atmospheric disturbances.
  • Intentional or willful non-compliance with any statutory provisions, or disregard for the insured’s technical or administrative management.
  • Losses of a purely financial nature, such as loss of goodwill, market share, etc.
  • Personal injuries such as libel, slander, false arrest, wrongful eviction or detention, defamation, and resulting mental distress, anguish, or shock.
  • Infringement of patents, copyrights, trademarks, trade names, or registered designs.
  • Fines, penalties, punitive or exemplary damages, or any other types of damages.
  • War, nuclear incidents, and Acts of God or similar perils.
  • Transportation of hazardous materials or dangerous substances unless specifically covered.
  • Ownership, possession, or use of aircraft, watercraft, or hovercraft by the insured or on behalf of the insured.
  • Injury to any person under an employment or apprenticeship contract with the insured, if such injury arises from the execution of that contract.
  • Liabilities arising under the Public Liability Insurance Act or any other legislation enacted after the policy is issued.
  • Liabilities assumed by the insured under any agreement, unless such liability would have existed without the agreement.

Claim Process

Exclusions

The policy does not cover liability arising from:

  • Earthquakes, earthquakes, volcanic eruptions, floods, storms, typhoons, hurricanes, tornadoes, cyclones, or any other similar natural disasters or atmospheric disturbances.
  • Intentional or willful non-compliance with any statutory provisions, or disregard for the insured’s technical or administrative management.
  • Losses of a purely financial nature, such as loss of goodwill, market share, etc.
  • Personal injuries such as libel, slander, false arrest, wrongful eviction or detention, defamation, and resulting mental distress, anguish, or shock.
  • Infringement of patents, copyrights, trademarks, trade names, or registered designs.
  • Fines, penalties, punitive or exemplary damages, or any other types of damages.
  • War, nuclear incidents, and Acts of God or similar perils.
  • Transportation of hazardous materials or dangerous substances unless specifically covered.
  • Ownership, possession, or use of aircraft, watercraft, or hovercraft by the insured or on behalf of the insured.
  • Injury to any person under an employment or apprenticeship contract with the insured, if such injury arises from the execution of that contract.
  • Liabilities arising under the Public Liability Insurance Act or any other legislation enacted after the policy is issued.
  • Liabilities assumed by the insured under any agreement, unless such liability would have existed without the agreement.

Claim Process

In the event of a loss, the following steps should be taken immediately:

  • Notify the insurer of the loss, provide a written statement detailing the nature and extent of the loss, and include an estimate of the amount claimed by third parties. Any delay in notifying the insurer may jeopardize the claim, as the insurer may refuse liability for the loss or damage.
  • Take all necessary steps to reduce and minimize the extent of loss, damage, and liability.
  • Assess the proximate cause of the loss and determine whether it falls within the policy’s scope.
  • Cooperate fully with the insurer and the appointed surveyor to complete the survey work and ensure a proper assessment of the loss.
  • Provide all relevant records and documentation requested by the surveyor or insurer to assess the extent of the loss and the liability under the policy.
  • Submit necessary documents such as the claim form, policy copy, demand letter, incident report, etc.