LIABILITY INSURANCES
Liability Insurance protects individuals and businesses against financial liabilities resulting from injuries to any person and property damage. It provides coverage for any legal cost or debt that the responsible party is found legally guilty of. However, this policy does not cover claims for intentional damages, criminal prosecution and contractual liabilities.
What is Liability Insurance: In today's litigious environment, individuals and businesses confront the constant threat of legal actions and claims filed against them. Whether it's a slip and fall accident on business premises or a customer alleging property damage caused by a faulty product, the dread of financial liabilities is ever present. such liabilities can swiftly escalate into expensive legal battles without adequate protection, causing substantial financial strain and reputational harm to all the parties involved.
To reduce these risks and ensure financial stability, the adoption of liability insurance becomes imperative. this specialized insurance coverage acts as a safety net for individuals and businesses. It provides financial security against claims of bodily injury, property damage and legal expenses, safeguarding their assets and reputation. The policy provides coverage for the following:
Financial expenses incurred due to lawsuits filed against the Insured.
Expenses incurred during investigations and settlements.
Financial coverage for the fees of investigating officer or hired lawyer after being sued by a third party.
Medical expenses incurred after an accident on the insured persons premises that led to a third party claim.
Medical expenses incurred after an accident from any of the insured persons products or during official operations.
Any loss or damage caused to the third party's property while visiting the office of the Insured person.
Exclusions: The Insurance Policy does not provide coverage for the expenses arising out of the following perils:
Willful misconduct and intentional damages.
Loss or damage incurred as a result of natural disasters such as cyclones, volcanic eruptions, floods, storms, earthquake or windstorms.
Loss in the market and loss of goodwill.
Libel and slander.
Expenses coming out of wrongful eviction, defamation and false arrest.
Infringement of patents, copyrights, trademarks, trade names, etc.
Fines and penalties.
Transportation of dangerous substances and materials unless opted for a separate kind of coverage.
Loss or damage caused due to war, nuclear war.
Types of Liability Insurances:
Public Liability Cover: Public Liability Insurance protects Individuals and Businesses from financial liabilities arising from bodily injury or property damage to third parties (excluding employees) caused by their operations or premises. It is essential for businesses that interact with the public, such as retail stores, restaurants and service providers.
Professional Indemnity Cover: Professional Indemnity Insurance, also know as Professional Liability Insurance, offers professionals safeguarding against allegations of errors, negligence or omissions in the services they deliver. professional liability insurance is crucial for professionals such as doctors, lawyers, consultants and architects who provides services to the clients.
Directors and Officers Liability Insurance: Directors and Officers Liability Insurance safeguard corporate directors and officers from personal financial liabilities arising from claims of wrongful acts or decisions (unlawful acts, releasing confidential information, conflict of interest, failure to maintain the property, gross negligence, etc.) made in their official capacity. it is essential for the companies of all sizes and their executives, including directors, officers and board members.
Errors and Omissions Insurance: Errors and Omissions (E&O) Insurance covers professionals against claims of negligence, errors or omissions in their services. it is necessary for professionals such as insurance agents, real estate agents, financial advisors and IT consultants.
Employer Liability: Employer Liability Insurance, often associated with worker's compensation, protects employers from financial liabilities arising from work related injuries or illnesses that employees suffer. it is mandatory for employers in India to purchase a workmen's compensation policy for their workers.
Product Liability: Product Liability Insurance covers manufacturers, distributors and retailers against claims of bodily injury or property damage caused by defective products they design, manufacture or sell. It is essential for businesses involved in the manufacturing, distribution or sale of products.
Third Party Liability Insurance: Third Party Liability Insurance protects individuals and businesses from financial liabilities arising from claims made by third parties for bodily injury, property damage or other losses caused by the Insured's actions or negligence. It is crucial for individuals and Businesses in various industries including construction, transportation and hospitality.
