Many a times, it is possible for your business to cause unexpected and unintentional damage to third parties. For example, you have placed a Hoarding on the highway about your business, and it suddenly drops over the walking/ Standing man on the road, leading to his injury or death. Such a liability which does not directly involve you is covered under a special kind of insurance called public liability insurance.

Let us Understand Public Liability Insurance?

Any business which has to deal with public, clients, employees or agents is recommended to take public liability insurance. If your business operations lead to financial or legal liabilities on you by the third party, you must consider taking appropriate public liability insurance to stay away from problems related to such unfortunate events.

Various Types of Public Liability Insurance

In India, Public Liability Insurance is classified into three major types:

1. Public Liability Insurance (Industrial Risks): This is meant for manufacturing units and warehouses.
2. Public Liability Insurance (Non-Industrial Risks): This is meant for any non-manufacturing units like hospitals, retail outlets, schools, IT Companies, BPOs, clubs, etc.
3. Public Liability Insurance under the Public Liability Act: The Environment Protection Act 1986 and the Public Liability Insurance Act 1991 make it mandatory for the business dealing in a hazardous environment to take suitable insurance.