Liability

This type of insurance protects the Insured in the event that they are held legally liable due to their (or
their employee’s) negligence or due to legislation.
The main types of Liability Insurance include:-

Public/Product Liability

Provides cover for your business in the event that you become legally liable to pay compensation for damages given due to accidental death or bodily injury to any third party, and accidental damage to property excluding property owned by or in the custody or control of the insured. This covers both members of the public or customers visiting your premises as well as you (or your employees) visiting theirs. Because of this, Public Liability Insurance is extremely important for Businesses whereby the general public frequent.

It also covers any related legal fees, costs and expenses as well as medical expenses.

Workmen’s Compensation/Employer’s Liability

This class of insurance is mandatory by law under the Workmen’s Compensation Act 1960. Employers are responsible for all injuries, occupational illnesses or disease sustained by a workman, as defined in the Act, arising out of and in the course of his/her employment
The Workmen’s Compensation Policy has two parts to it; firstly it covers the company’s statutory obligation to compensate employees according to the Workmen’s Compensation act and secondly covers the company’s Liability as employer at common Law.

Statutory Obligation:- Employers are responsible for all injuries, occupational illnesses or disease sustained by a workman arising out of or during the course of their employment regardless of negligence on the part of the Employer. This section of the policy is straight forward as it pays exactly what the Workmen’s Compensation Act states is required. The compensation varies based on type of disablement but it is calculated as a percentage of that employee’s salary
Common Law:- Further to receiving compensation an injured/ill employee can also sue you in common law for damages on the basis that the Employer acted negligently and that then resulted in the injury/illness. This section of the policy has a limit of $2,500,000, which can be amended based on the business requirements.