Businesses succeed with the combined support and effort of people such as employees, clients and customers. But a lot of times, these clients and customers could face accidents that take place in a business premise. Hence, it is considered an important policy for businesses to purchase Public Liability Insurance.
Public liabilities insurance offers protection to the business in case any third-party liability arises out of injury or property damage. These third parties could be customers, clients or members of the public. As public liability insurance policies help reduce the financial burden that may pop up because of third-party liabilities, it can also be called third-party liability insurance.
If public liability insurance works in combination with product liability insurance, it is also known as Commercial General Liability Insurance.
Public liability insurance is very important for businesses owners, restaurants, hospitals and even doctors. It is usually acquired by enterprises, and even individuals who could possibly be held accountable for legal or financial liabilities. For instance, if someone is visiting your office and they slip and sustain an injury (like a sprain or a broken ankle) which will lead to hospitalization, this insurance could help you pay off the hospital bills and deal with the legal liabilities.
Many public liabilities insurance policies provide extended coverage for industrial risks, non-industrial risks, all business units dealing with hazardous substances, etc. They also provide more comprehensive protection by covering the legal expenses that could arise out of:
A public liability insurance does not provide cover for certain situations. They are as follows:
Having public liability insurance is not a statutory legal requirement. But it is necessary to buy it in order to protect the business from financial problems. In India, public liability insurance is made in such a way that it caters specially to individuals or businesses who could be held legally responsible to pay for damages and injuries caused to a third party. For example, if your product causes damage to someone else, then your company could be sued for the loss.
If your business engages in any of the following, then you should consider buying a public liability insurance:
After buying a public liability insurance policy, it is also important to understand the claim process for it. To file for a claim, you can follow the steps given below:
Step 1: Properly analyse and evaluate the damage and loss that has happened.
Step 2: As soon as possible, inform the insurance company in writing.
Step 3: Collect the proof and evidence.
Step 4: Provide the needed medical certificates in case of injury or death.
Step 5: Submit the duly filled claim form and the required documents.
Step 6: a professional will evaluate the file and decide whether to accept or reject the claim.
Step 7: If you are not satisfied with the decision of the insurer, then you can approach the court.
Though public liability covers many situations, there are certain cases which are not covered under it. These are also known as exclusions. Some of these are:
This insurance ensures that businesses succeed without facing any unexpected financial losses. There are also alternatives for public liabilities insurance such as general liability insurance. Before buying any public liability insurance, it is important to know about all the aspects related to it. This will help you make the decision that will be best for your business.
Are you looking for a new insurance policy or a policy renewal? Reach out to us and let us assist you.