Public Liability Insurance Act, 1991: An Overview

Public Liability Insurance Act, 1991 is legislation that provides for the protection of individuals from personal injury, property damage, and other losses arising from the negligence of another party. The Act primarily applies in the United Kingdom, but can also be applied in other countries.

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What is Public Liability Insurance and What Does it Cover?

It offers financial protection to businesses from potential claims from customers, suppliers, and other third parties. It helps businesses to cover the cost of legal fees and settlements if they are accused of causing injury, illness, or property damage, or if an accident occurs on the premises.

It is a type of insurance that helps protect businesses from the risk of being sued for negligence or accidental damage. It may help pay for legal costs, settlements, and medical expenses if someone is injured on the premises or if a customer or supplier is affected by a product or service.

The policy covers legal and medical costs associated with any accidents or injuries that occur as a result of your business activities. It is designed to protect businesses from claims for compensation for personal injury or damage to property that could be caused by you, your employees, or your products.

It helps businesses to cover the cost of legal fees and settlements if they are accused of causing injury, illness, or property damage, or if an accident occurs on their premises. For example, if a customer falls over in your store and injures themselves, public liability insurance could cover the cost of any medical expenses or legal fees associated with the claim.

The policy can also cover any damages that result from faulty products or services. If a product you’ve supplied causes damage to a customer’s property, you could be held liable for the costs. Public liability insurance would help to cover the costs of any legal fees, settlements, or repairs.

It is essential for many businesses, especially those that deal with customers directly. It is a cost-effective way to protect your business from potential risks, and it can give you peace of mind knowing that you’re covered in the event of an unfortunate accident.

Purpose of the Act

The purpose of the Act is to ensure that those who are liable for injury or damage to others are adequately insured to cover any potential losses. This is especially important for businesses and organizations, as they may be liable for larger amounts of damages than individuals.

Key Provisions of the Act

The Act sets out a number of key provisions that must be adhered to in order for public liability insurance to be valid and effective. These include:

  • Requiring the insured party to pay premiums, which are set by the government, to cover the cost of providing insurance coverage.
  • Setting out the nature and extent of cover that must be provided by the insurer. This includes liability for personal injury, property damage, financial loss, and other losses.
  • Establishing the minimum levels of cover that must be provided by the insurer.
  • Setting out the duties and responsibilities of the insurer, including the duty to pay out claims within a reasonable period of time.
  • Setting out the procedures for making claims and the remedies available to the insured party if the insurer fails to pay out the claim.
  • Requiring the insurer to provide a written statement of the terms and conditions of the policy.

Conclusion

Public Liability Insurance Act, 1991 is an important piece of legislation that helps to ensure that businesses and organizations are adequately protected from potential liabilities arising from the negligence of another party. The Act outlines the duties and responsibilities of the insurer, sets out the nature and extent of cover that must be provided, and requires the insured party to pay premiums to cover the cost of providing insurance cover.

Written By: PolicyBazaar - Updated: 14 February 2023
Policybazaar for Business - Comprehensive Liability Insurance - Customer Reviews
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4.3 April 09, 2023
Shubh
Competitive Premiums
The premiums offered by PolicyBazaar for the Comprehensive General Liability Insurance are competitive, considering the extensive coverage and top-notch customer service they provide.Truly recomend it.
Ludhiana
4.3 March 28, 2023
Prakhar
Worth Buying
PolicyBazaar worked closely with me to tailor the coverage to meet the specific needs of my business.Worth buying.
Dehradun
3.8 March 16, 2023
Veer
Wide Coverage
One of the most significant aspects of this insurance is its coverage. It provides extensive protection against a wide range of liabilities, including bodily injury, property damage, etc. Thanks for the policy PB
Lucknow
3.8 March 04, 2023
Akash
Peace Of Mind
I have been a satisfied customer of PolicyBazaar for several years now. It offers a comprehensive and reliable safety that has given me peace of mind and allowed me to focus on growing my business without constant worry about unforeseen events.Thankyou PB.
Bareilly
3.8 February 20, 2023
Ram
Claim Process Is Hassle Free
PolicyBazaar's claims process is efficient and hassle-free. In the unfortunate event of a claim, they handled everything swiftly and professionally, ensuring a smooth resolution without unnecessary delays. This reliability and promptness have further strengthened my trust in their services.Thankyou.
Delhi
4 February 20, 2023
Rohan
Great Customer Support
PolicyBazaar can help you get your Insurance as I am in the construction Industry and needed some guidance on risk concerns. I contacted PolicyBazaar Team, whO explaned to me the process to get the Insurance. Thank you PolicyBazaar.
Jamshedpur
3.8 February 16, 2023
Aditi
Damages Covered
I recently purchased CGL insurnace from PolicyBazaar. They helped me to cover my damages. Thankyou.
Jamshedpur
4 February 12, 2023
Neha
Helpful Team
We were looking to buy Comprehensive General Liability Insurance Plan that protects Third party property from any accidental damage at my workplace. So we landed on the PolicyBazaar website. It was well managed and described all the benfits in detaill... We contacted their Customer support and dcided to buy from them. Thanks, PolicyBazaar Team
Coimbatore
3.8 February 08, 2023
Veer
All In One Platform
It is an All in one platform which provided me unique perks, Low premium prices and a fast claim settlement process. Thankyou PB. Excellent platform.
Vadodara
4.3 February 04, 2023
Amar
Good Package
Got a really good coverage. Thanks, PolicyBazaar
Lucknow