Commercial Liability Insurance protects a business as a cushion against risks and damages occurring due to operations, legal liabilities due to slip and fall accidents including bodily injury and damage to reputation. Depending on the chosen insurer, there may be minor variations in the aspects covered under such a scheme.

Despite such minor variations, most of the schemes generally include similar risk covers. This typically includes:

  • Damage to property and bodily injury: These cover non-professional acts of negligence that cause damages or liability arising in the premises or due to the operations.
  • The insurance also covers personal and advertising injury: It protects the insured against risks from offenses like slander, false arrest, malicious prosecution, copyright infringement, using someone else’s advertising idea, libel defamation, wrongful invasion of privacy, forced entry or eviction.
  • Medical Payments are also covered, in cases where a non-employee is injured on the company’s premises or due to the company’s business operations.
  • Product Liability and Defense Costs: It even covers products liability and sometimes defense costs apart from damages.

Click here to know what is not covered under Commercial Liability Insurance

Case on Commercial Liability Insurance Cover

Ms. Sen has a painting company. Her staff visits contracted sites and offer turnkey solutions for painting and repair to new and old properties. Recently, she got a call from one of her clients who shouted angrily that her entire bedroom wall was wet due to seepage as her workers had left the bathroom water tap running, while there was some repair work going on in the bathroom, along with the painting. The client demanded a meeting and came to the company’s office for the same. To make matters worse, she slipped and fell on the floor of the office, cut her lip, and fumingly threatened to file multiple damages against Ms. Sen’s company.

Investigations had revealed the staff worker had accidentally left the tap leaking and not fully running as per the claim of the client. The wall had been severely damaged due to the seepage, and Ms. Sen would have to bear the cost of the repair. Also, the client’s medical expenses for treatment of the injury was also to be borne by her. Luckily, her commercial liability insurance protects her against both the costs and saves her a great deal of money.

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