The public liability exposure is higher for places with high number of third-party footfalls such as theatres, stadiums, hotels, malls, shopping complexes and the likes. The type of claims that would arise mostly from such public places are usually “slips and trips” claims– where the insured is being sued for a slip/ fall by a third-party visitor to the premises from inadequate warnings (like “wet floor”, “watch your step”) or poorly managed facilities and infrastructure. In places with high number of footfalls, these type of claims can be high on frequency but are almost always low in severity. Similar other exposures could arise from the food and beverages including alcohol consumed at such places.

There are other public liability exposures that are usually low on frequency but have the potential to be high on severity - these would include exposures from industries to members of the public at large. An unexpected discharge from the factory can pollute surrounding areas and result in bodily injury to the public or property damages such as damage to crops/ agricultural land. The public liability insurance that is brought by insured organization would provide protection for legal liability arising from such incidents. The policy would pay for defence costs and damages awarded against our insured.

Public liability policy is offered on a claims-made basis - this implies that the policy would respond to claims made against the insured during the policy period for wrongful acts that occur on or after the retroactive date. The policy pays for defence costs incurred by the insured and any damages that may be imposed against the insured.