Introduction

Growing awareness of insurance and rights of people along with the growing businesses be it a hotel, manufacturing plant, dwellings, IT parks, etc, business/individuals are exposed to a large liability arising out of bodily injury/ property damage suffered by third party.
Coverage
Policy covers the insured against legal liability towards claims to third party in respect of accidental death/ bodily injury and / or property damage arising out of the specified business of the insured and the legal cost/expenses incurred in connection with the claim.
Sum insured Depending on exposure, the insured has to fix two limits of indemnity – Any One Accident (AOA) and Any One Year (AOY). The ratio between AOA and AOY can be of 1:1, 1:2, 1:3 and 1:4.

Premium
Premium depends on risk group, indemnity limits, ratio of limits, number of locations, annual turnover, etc.
Major Exclusions

• 1. Liability to own employees or contractor employees.
• 2. Losses arising out of deliberate, willful or intentional non-compliance of any statutory provisions.
• 3. Losses arising out of loss of pure financial nature – such as loss of goodwill, loss of market, etc.
• 4. Losses in connection with any product
• 5. Pollution
• 6. Consequential loss.
• 7. Losses arising out of transportation of material

Extension
The policy may be extended to cover Act of God perils, Transportation of hazardous substances, etc.