What You Should Know Before Choosing Public Liability Insurance for Industrial Risks

This policy helps businesses manage legal liability towards third parties for accidental injury, death, or property damage caused during business operations.

What It Covers

- Third-party injury or death

- Damage to third-party property

- Legal expenses for defending claims (with prior approval)

- Coverage for multiple business units under one policy

- Retroactive coverage on continuous renewals for certain past incidents

Types of Coverage

- Non-Industrial Risk: Offices, hotels, hospitals, schools, cinemas, etc.

- Industrial Risk: Factories, warehouses, godowns

- Mandatory Liability Cover for hazardous substances under the Public Liability Insurance Act 1991

Optional Add-ons

- Natural disasters like flood or earthquake

- Pollution risks (with approval)

- Transportation risks

How Coverage Limit Works

- Sum insured is called Limit of Indemnity

- Coverage is divided into:

- AOA (Any One Accident) limit

- AOY (Any One Year) limit

- Available ratios:

- 1:1

- 1:2

- 1:3

- 1:4

Examples of Liability Claims

- Building collapse

- Falling fixtures

- Poor maintenance causing accidents

- Toxic leakage affecting people or property

Important Claim Conditions

- Only civil liability claims are covered

- Insurance company must be informed immediately

- Legal notices should be shared without delay

- Incident must happen during the policy or retroactive period

What Is Not Covered

- Contractual liabilities

- Intentional violations

- Fines or penalties

- Defamation or false arrest

- Loss of goodwill or mental injury

Disclaimer

This is a general overview for informational purposes only. Refer to the full policy terms and conditions for complete coverage details and exclusions.