Consider the below scenarios:
- Your factory catches fire and the fire spreads & damages factory(ies) adjacent to yours. This will make you responsible for losses or damages caused to them.
- A visitor visits your factory and is injured while falling off from a staircase, accidentally injured, catches food poisoning after consumption of food & beverages in your premises.
- A customer falls on a wet floor of your mail, office or factory.
- A passer by walking by building under construction, a metal piece fall on him.
- Cows grazing near your factory premises catches with mysterious disease leading to a fatality.
- A liquid chemical carried by your appointed transporter meets with an accident and causes it flow into land near by causing widespread destruction of standing crops.
- What if your employee gets embroiled in a brawl in a foreign country.
- What if your advertising punch line hurts public sentiments and are flooded with complaints and lawsuits.
- What if your rented premises is caught fire and you are held responsible.
- What if a visitor whom you are taking out in a rented car meets with an accident and his family claims for losses.
Any of the above situations or similar, the company may have to cough out huge expenses towards defending itself whether they may be right or not. Public Liability Insurance (also called General Liability) covers all such above situations and ensures that the company’s balance sheet is protected in adverse event of paying off damages The amount of coverage to purchase all depends on the area of operations, type of business, number of employees, offices etc.