If you own business factory or even a retail store, that you may have faced complaints of bad products causing damage and injury to them. A visiting customer getting injured while going through your store or factory. Such incidents are the perils considered under commercial terms, where a business owner or corporate could become liable to compensate the customer, vendor or a third party just visiting or residing near the compound.
The hazards which may lead to a financial liability on the company are as follows:
- Damage to the health or property of a person visiting the business premise/factory
If a person visiting your business premise or factory is accidentally injured or loses/ damages his property. It becomes the liability of your firm to compensate the person for his/her loss.
- Medical expenses incurred for the treatment by an injured person other than a worker or employee
Medical expenses incurred on treatment by the general public, for the injuries of health complications sustained due to a chemical leak, dust or toxic smoke emanating from the factory or business premise. Or a property damage suffered by the general public must be borne by the factory owner or business.
- Damage to property or injury caused by a product sold or manufactured by the firm
You might be involved in either manufacturing or selling some products. If any of these products cause injury to the user (buyer) or its users or damage their property due to a manufacturing defect or design error, it becomes your responsibility to compensate the customer for his/her loss.
If the usage instructions are not clear, or ambiguous or incomplete then also, the injured user becomes eligible to claim compensation from the seller or manufacturer of the product.
- Damage to the goods of a third party due to faulty packing while in transit
Many times the products manufactured or supplied by you need to be transported in bulk or in packages to far away locations. Packing of the cargo is the responsibility of the trader or exporter, and if there is a leakage or explosion in the transported goods on the way, it can damage the other goods kept in the vicinity of your consignment. Any liability arising out of such accidents will fall on your business.
- Damage to the transport vehicle or injury to its employees due to the complications with the product
The perils described in point no. 4 can also lead to injury, health issue or property damage to the transporter/shipper or its employees. Such damages can also be claimed from the owner of the culprit goods.
Commercial General Liability Insurance
The commercial general liability insurance covers all the non-professional negligent acts and provides a cover to the business owner. Perils are not limited to injury and property damage, it also includes advertising injury, which means that the advertisements constituted misleading information.
Insurers offer two types of Covers Under Commercial General Liability Insurance
Public Liability Insurance: Public liability arises when your people who are not related to your business in anyway, such as the general public, neigbouring residents to your factory, etc. face property damage, injury, or health issues due to your business activity.
Public liability insurance covers the the claims payable towards civil liabilities an legal expenses in defending such claims in court.
Product Liability Insurance: Product liability arises when a customer suffers an injury, loss of property or health issues because of your product either sold or manufactured by your business. The damage could be due to faulty design, packaging or incomplete or ambiguous usage instructions on the package.
Product liability insurance covers the civil claims payable in these circumstances along with any legal defence expenses.
How to Buy?
It has become extremely easy to purchase a commercial liability policy. It can be purchased online through the portal offered by leading corporate insurance advisor SecureNow. SecureNow offers quick comparable quotes from multiple insurers on the portal.
Once you get the quotes, you can compare the same and apply for the policy you want to buy within minutes. The premium depends on the type and size of your business as well as the nature of the business and the past history. In case you have any questions customer service staff of SecureNow can be accessed through live chat or call 24×7.
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