Public Liability Insurance

Public Liability Insurance for Business Protection

Running a business comes with its fair share of risks, especially when it involves third-party interactions. Whether you’re a manufacturer, a shop owner, or a service provider, accidents or damages can happen without warning. One slip on a wet floor or a faulty product causing damage can lead to costly lawsuits. That’s where Public Liability Insurance steps in to protect your business from unexpected legal and financial troubles.

What is Public Liability Insurance?

Public Liability Insurance is a type of insurance that protects businesses from legal liabilities that arise due to third-party bodily injuries or property damages caused during business operations. If a customer, vendor, or visitor gets hurt or suffers a loss on your business premises or due to your services, you could be held legally liable. This is where PL Insurance (short for Public Liability Insurance) provides coverage for compensation, legal defence costs, and damages.

Why is Public Liability Insurance Important?

A single accident or claim can result in significant financial loss, legal fees, and reputational damage. For example, if a customer trips over loose wiring in your store and injures themselves, they may file a compensation claim. If you’re not covered, you may have to pay the damages out of pocket.

Public Liability Insurance cover offers peace of mind. It helps:

●      Protect against unexpected third-party lawsuits

●      Manage legal defence and court fees

●      Fulfill contractual and statutory obligations

●      Secure your financial stability

●      Enhance your company’s reputation as a responsible business

Key Features of Public Liability Insurance Policy

The Public Liability Insurance Policy offered by Bajaj General Insurance Limited is tailored to protect Indian businesses from third-party risks. Here are its main features:

1. Comprehensive Indemnity

It covers legal liability (including defence costs) against third-party bodily injury or property damage arising out of business operations, provided the claim is made during the policy period.

2. Defence Costs

All legal fees, investigation costs, and settlement expenses are covered, as long as they are pre-approved by the insurer and within the Limit of Indemnity.

3. Extended Coverage to Employees and Directors

The policy covers liability for acts committed by employees, directors, and even committee members of staff welfare units, such as canteens or medical facilities, as long as it is related to business conduct.

4. Worldwide Jurisdiction Option

While the default coverage is for accidents occurring and claims made in India, customised solutions may be offered for businesses operating across borders.

5. Flexibility in Limits and Deductibles

Businesses can choose the public liability insurance quote that fits their budget and scale by adjusting the deductible and indemnity limits.

What is Covered Under Public Liability Insurance?

Here are the primary components included in a public liability insurance policy:

●      Third-party bodily injuries caused by your business activities

●      Property damage to third-party property due to accidental events

●      Legal fees and expenses for defending such claims

●      Claims made within the policy period for events occurring in the business premises

What is Not Covered?

Like any insurance product, public and liability insurance comes with certain exclusions. The following are not covered:

●      Deliberate or wilful acts of negligence

●      Claims arising from employment-related injuries (covered under Workers’ Compensation)

●      Consequential financial losses, like loss of profits or goodwill

●      Claims related to pollution, asbestos, and radioactive contamination

●      Product liability (covered under a separate Product Liability Insurance policy)

●      Terrorism-related claims

●      Construction-related incidents

●      Claims arising from contracts where you’ve voluntarily assumed liability

Who Needs Public Liability Insurance?

Any business that interacts with third parties should consider public liability cover essential. These include:

●      Retail stores and shopping malls

●      Restaurants and cafes

●      Educational institutions

●      Manufacturing plants

●      Warehouses and godowns

●      Event organisers

●      Service providers (like electricians, plumbers, consultants)

●      Real estate and property developers

●      Healthcare providers

●      MSMEs with footfall or external contractors

Public Liability Insurance for MSMEs

MSME Insurance is vital for small and medium businesses that may not have the reserves to fight a legal battle. A public liability claim can cause immense strain on MSMEs. That’s why Bajaj General Insurance offers cost-effective PL insurance plans suitable for small enterprises, ensuring financial stability and uninterrupted growth.

Public Liability and Marine Insurance

While public liability insurance covers third-party incidents on land, marine insurance protects goods in transit, whether by road, rail, air, or sea. Businesses dealing in logistics, exports, or product delivery benefit from combining both. It ensures that you're protected both during transport and within your business premises.

How to Choose the Right Public Liability Insurance Policy?

Here are some factors to consider before choosing the right public and liability insurance:

●      Risk exposure – Evaluate how likely accidents or third-party claims are in your line of work.

●      Industry type – High-risk industries like chemicals or manufacturing need broader cover.

●      Premises size and customer footfall – The more visitors you have, the greater the risk.

●      Legal compliance – Some contracts or licences may require proof of liability insurance.

●      Policy terms – Always review the exclusions, limits, deductibles, and cancellation clauses.

How to Get a Public Liability Insurance Quote?

Getting a public liability insurance quote from Bajaj General Insurance is simple:

- Visit the official website of Bajaj General Insurance Limited

- Fill in basic details such as your business type, premises size, annual turnover, and location

- Customise your cover – choose your preferred deductible and sum insured

Get an instant premium quote and download your policy digitally

Why Choose Bajaj General for Public Liability Insurance?

Bajaj General Insurance Limited is one of India’s leading insurers, known for its wide product portfolio, robust claim settlement, and transparent policy wordings. Here's why businesses trust Bajaj General Insurance:

●      Quick claim settlements and strong legal support

●      Easy-to-understand policies tailored for Indian businesses

●      Seamless digital onboarding and documentation

●      Additional protection through bundled business policies like MSME Insurance and marine insurance

●      Responsive grievance redressal support, including dedicated helplines for senior citizens

Public Liability Insurance vs Other Business Insurance 

Steps to File a Claim Under Public Liability Insurance

In case of a claim, follow these steps:

- Notify the insurer within 7 days of the incident or claim.

- Submit a written report with details of the event, damages, witnesses, and documentation.

- Do not admit liability or make payments without prior written consent from the company.

- Assist the insurer in investigations and legal proceedings.

- Track your claim status via the online portal or contact customer care for support.

The policy also includes a subrogation clause, which means once a claim is paid, Bajaj General Insurance can recover the amount from the responsible third party, if applicable.

Every business—small or large—carries the risk of third-party claims. The legal and financial repercussions can be devastating, especially when you least expect it. That’s why smart business owners invest in Public Liability Insurance. It doesn’t just protect your operations—it secures your peace of mind.

With Bajaj General Insurance Limited, you get more than just a policy—you get a trusted partner in risk management. Whether you need a quick public liability insurance quote, want to explore bundled MSME insurance options, or require marine insurance along with third-party cover, Bajaj General Insurance  has a solution ready for you.