Public Liability Insurance offers cover for third party liabilities (Bodily Injury / Property Damage). The policy can be extended to cover legal expenses arising out of Sudden and Accidental Pollution, Act of God Perils, Transportation of Hazardous Substances, Carriage of treated effluents etc.
The Public Liability insurance provide immediate relief to persons affected due to accident while handling hazardous (dangerous) substance by the owners which can be include any Firm or its partners, An Association or its members, Company or its Directors and all other persons associated and responsible to that Company in the conduct of their business.
Depending upon the nature of operations Public Liability Insurance policies as follows:
Public Liability Industrial Risks - For Manufacturing Units.
Public Liability Non Industrial Risks - For Non Manufacturing entities like IT companies, BPOs, Hotels, Schools, Restaurants and Clubs.
means an accident involving a accidental sudden or unintentional occurrence while handling any hazardous substance resulting in continuous irregular or repeated exposure to death of or injury to any person or damage to any property but does not include an accident by reason only of war or radioactivity.
Handling in relation to any hazardous substance means the manufacture processing treatment, package storage transportation by vehicle use, collection, destruction, and conversion offering for sale transfer or the like of such hazardous substance.
Hazardous Substance means any substance or preparation, which by reason of its chemical properties or handling is liable to cause harm to human beings, other living creatures, plants, microorganism property or the environment
Any one accident: Minimum equals to Paid up Capital up to a maximum of Rs.5 crores.
Any one year: 3 times of any one accident limit subject to a maximum of Rs.15 crores.
An amount equal to the insurance premium chargeable is to be paid simultaneously by every owner with the insurance premium to the underwriting Company.
Apart from Public liability insurance Act policy policies are also available to cover the legal liability of the insured against third parties for claims arising due to industrial accidents. Two different types of policies are available to cover accidents in industries like factories etc and non-industries like hotels schools exhibitions and storage tanks etc.
Public liability is a legal liability to pay damages consequent upon bodily injury, illness or disease sustained by any other person, other than employees, or loss of or damage to their property caused by an individual or business.
It’s essential to have sufficient public liability insurance cover to protect yourself and your business against property damage and personal injuries caused to other people as a result of your business activities.
A public liability policy will cover property damage and personal injury caused by your own staff and employees, but it will not cover property damage or personal injury that they suffer.
