Public liability insurance is basically designed in favour of the demands of the public i.e. it is good in order to solve the various problems that may or may not occur in a business. Thus, a commercial act has been developed according to which all the owners, hazardous substances or handling must be insured by taking the insurance policy to an extent.
Here, the various mentioned things must be elaborated so that one will not face any kind of confusion when dealing with it:
* Owners: This actually represents the persons having some kind of control over handling the hazardous substances at the time of an incidence.
* Hazardous substance: This means the items that are listed under the insurance policy i.e. public liability insurance act, 1991 and it also lists out the various rules that are enclosed under this act.
* Handling: This means processing, packaging, manufacturing, treatment, transportation, collection, storing, use, conversion, destruction, transfer, offering for sales or any kind of similar act that any way deals with the hazardous substances.
What all this insurance policy covers?
This type of insurance policy basically covers the owner’s statutory liability on no fault of the principal, either for an injury or for death of any other visitor or person. It can also be implemented to the damaged property resulting from an accident while covering up hazardous substances. In simple words it can be said that public liability insurance is used for covering the business, property, homes, or the people who are indirectly linked to the business (the third-party).
- Significant exclusions:
Actually, this insurance policy does not cover up the liability that arises out of the intentional non compliance of any statutory provisions. This may be in respect to any kind of penalties or fines. This means that an individual needs a proof that will help in investigation of the incident.
This is the actual part of the policy that should be opened in detail so that one will not face any problem in future. It basically depends upon the two factors i.e:
– Annual turnover (includes all taxes and levies)
– Limits of protection selected
Other amount is also contributed towards the environment relief fund.
By John Benson