Public Liability Insurance offers the optimum protection to the business in case any third-party liability arising out of injury or property damage. Public exposure or liability affected by law can destroy the promising future of any business. With this insurance policy, you can mitigate the financial burden that may arise due to third-party liabilities, for this reason, it can also be called third-party liability insurance. It is commonly known as Commercial General Liability Insurance as well, which works as a combination of both Product Liability and Public Liability insurance policies.
For instance, a customer visiting your office slips and breaks her ankle due to a wet floor, leading to hospitalization. What if this leads to a liability arising out of injury? That’s why having your business insured with Public Liability Insurance is necessary.
Public or third-party liability insurance is paramount for business owners, hospitals, and even doctors. A liability insurance policy is usually acquired by enterprises or individuals, who might be held accountable for legal or financial liabilities, apart from other relevant issues.
Public liability insurance in India is specially designed for the companies or individuals who may be held liable or legally responsible to pay for the injury or other related damages caused to a third party. This is especially recommended for professional organizations like hospitals, BPOs, doctors, and even business owners. For instance, if your faulty product causes damage or injury to someone else, you may be sued for the loss caused.
Moreover, if your business involves the following criterion that you need to consider buying a PL insurance -
It might not be a statutory legal requirement, but it is a necessary buy to protect the business from a monetary drain arising out of a lawsuit. At any point in time, if your business is sued by a third party, the insurance will cover the entire legal expenses on you. You should consider this insurance if your business comes into contract with third parties on a frequent basis.
You can protect your business from unforeseen events by purchasing a public liability insurance policy that comes with the following benefits:
Commercial General Liability insurance or public liability policy ensures that your business takes off without incurring an unexpected financial loss. General liability business insurance assures a safe future of your business by covering almost all types of liability expenses.
Although the types of public liability insurance India is not properly defined, in most of the countries, the following types of public Liability policies are offered:
The coverage under public liability insurance or third party liability coverage is extended for industrial risks, non-industrial risks, all business units dealing with hazardous substances, etc. to enjoy more comprehensive protection this policy can be extended to cover other legal expenses arising out of
The list of coverage includes:
Public Liability or commercial general liability insurance shall not cover the claims arising under the following situations
While deciding the premium for public liability insurance, the insurers take various factors into consideration. The foremost thing that severely affects the premium of 3rd party liability insurance is the amount of risk your business is exposed to. Higher the risk, the higher the premium you will pay or vice versa. Other factors include the claim settlement history of the insured, how the insured approaches certain risks, business records, etc.
Buying the right type of public liability insurance is imperative. With plenty of policy options and innovative products, it can be a little confusing. Simply start by analysing your insurance needs. You can also buy it online and make an easy comparison. You can compare the insurers based on their claim settlement ratio, coverage offered, premiums etc. it is the best way to ensure the right liability coverage.
If not, you can visit a nearby branch and buy insurance offline. You will have to approach the insurance officer and pay the premiums by cash or cheque. Well, whatever mode you choose, just make sure that it caters to your needs and requirements.
There is no standard set for claiming public liability insurance. The claim process may vary insurer to insurer.
Just ensure you have kept all the relevant documents handy and provide the insurance investigator with the right information. Whenever a liability claim arises immediately inform the insurer and complete the further formalities.
Usually, whenever a claim is registered, the insurer appoints a surveyor to investigate the claim and estimate the damages.
In case of liability, the court decides the liability amount and the same will be settled by the insurance company. This requires all the supporting documents to be submitted without fail. However, liability claim is completely different from the other claims as it involves the judgement of the court.
Ans: Public Liability Insurance aids you cover the costs of liability arising due to third party bodily injury, property damage, or advertising injury.
Ans: No. General liability insurance doesn’t cover this.
Ans: This policy is designed for third party liability only and thus it doesn’t cover any damage to your business.
Ans: Well, having public liability insurance is completely your choice. It is not mandatory till date. But with this policy, you can provide the much-needed monetary protection against liability.
Ans: The factors that affect your premium for public liability insurance includes: