comprehensive general liability commercial

Comprehensive General Liability Commercial

Product Liability Policy covers all sums for which you might become legally liable to pay as damages in consequence of accidental death/bodily injury or disease to third parties and/or loss of or damage to third party property arising out of any defects in the products manufactured and covered under the policy after such products have left your premises. It shall not be permissible to issue Product Liability Policies with unlimited liability.
Defence Costs
The company will, subject to the limit of indemnity, pay all costs, fees and expenses incurred with their prior written consent in the investigation, defence or settlement of any claim and your costs of representation at any civil inquest, inquiry, or other proceedings in respect of matters which have a direct relevance to an actual or anticipated claim against your falling within the terms of this insurance policy.

This Policy will indemnify the Insured in excess of the Insured’s Deductibles and subject to the limit of indemnity, against its legal liability (including Defense Costs) to pay Damages for third party Civil Claims arising out of Bodily Injuries and / or Property damage:-

  • caused by an accident in the premises
  • in the course of the business
  • where the basis of the coverage is Occurrence, this insurance shall apply in respect of Damages occurring during the Period of Insurance
  • where the basis of the coverage is Claims Made Coverage, this insurance shall apply in respect of Claims first made during the Period of Insurance resulting from Damages occurring during the Period of Insurance or after the applicable Retroactive Date.

Premium:

Premium chargeable depends on the risk group, limits of indemnity selected, ratio of indemnity limits, number of locations, products, annual turnover and exports.

Sum Insured

Depending on exposure, the proposer has to fix two limits of indemnity under the policy:

Any One Accident (AOA)

Any One Year (AOY)

It is not permissible to issue insurance policy with unlimited liability.

The policy does not cover liability or costs:

General Exclusions

Aircraft and Watercraft and Mechanically propelled vehicles

any legal liability arising directly or indirectly out of the ownership possession maintenance or use by or on behalf of the Insured of any
a) aircraft or other aerial device b) hovercraft c) vehicle / trailer for which compulsory insurance or security is required in accordance with any motor or road traffic legislative regime in force in the Policy Territory other than
i) any water-borne craft not exceeding six metres in length
ii) the act of loading or unloading or the bringing to or taking away of a load from any vehicle or trailer as stated in c above.

Asbestos

any legal liability of whatsoever nature directly or indirectly caused by or contributed to or arising from asbestos, asbestos fibres, asbestos dust or any materials containing asbestos.

Compulsory insurance

any legal liability for which a compulsory insurance is locally required.

Cyber Risk

any legal liability arising directly or indirectly from loss, damage, destruction, distortion, erasure or alteration of Electronic Data from any cause whatsoever.

Contractual Liability

any liability assumed by the Insured under contract or agreement (e.g. to fulfil contractual requirements (guarantees/ warranties) unless such liability would have attached in the absence of such contract or agreement.

Damage to Products /Completed Operations

damage to any Products/Completed Operations caused by any defect therein the harmful nature thereof or the unsuitability thereof to fulfil its intended purpose.

Deliberate Acts

any legal liability which results from a deliberate act or omission of the Insured and which could reasonably have been expected having regard to the nature and circumstance of such act or omission.

Directors and Officers Liability

any legal liability arising directly or indirectly out of or alleged to have arisen from any wrongful act of directors or officers of the Insured in the discharge or performance of their duties as such other than Claims for Damages and claimants’ costs and expenses consequent upon Bodily Injury or Property Damage.

For the purpose of this Exclusion wrongful act shall mean any actual or alleged error or misstatement or misleading statement or act or omission or neglect or breach of duty by the directors or officers in the discharge of their duties individually or collectively or any matter claimed against them solely by reason of their being Directors or Officers of the Insured.

Employment Practices Liability

any legal liability arising directly or indirectly out of or alleged to have arisen from any harassment misconduct discrimination breach of confidence or Employment Practices.

Fines and Penalties

Fines, penalties, punitive or exemplary damages ordered or awarded by any Court.

Infringement of Intellectual Property Rights

any legal liability arising directly or indirectly out of passing off or infringement of patent copyright trade mark trade name or any other intellectual property.

Nuclear

any legal liability of whatsoever nature directly or indirectly caused by or contributed to or arising from
a) ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel.
b) the radioactive toxic explosive or other hazardous properties of any explosive nuclear assembly or nuclear component thereof.
c) the furnishing by the Insured of service materials parts or equipment in connection with planning construction maintenance or use of any nuclear facility including any nuclear reactor or device designed or used for
i) separating the isotopes of uranium plutonium
ii) processing or utilising spent fuel or
iii) handling processing or packaging nuclear waste.

Offshore

any legal liability arising out of the Insured’s activities as Operator of Offshore platforms For the purpose of this exclusion, Offshore platforms are understood as fixed or mobile facilities for the production of oil and gas, metal, energy production.

Pollution

any legal liability arising directly or indirectly out of Pollution

- other than caused by a sudden, identifiable, unintended and unexpected incident which takes place in its entirety at a specific time and place during the Period of Insurance.

- occurring in the United States of America and / or Canada and / or their dependencies or in any country to which the laws of the United States of America or Canada laws apply.

Previous Knowledge

any legal liability arising out of any Occurrence the circumstances of which the Insured was aware prior to the inception of this policy.

Property being worked on

Property Damage to that part of any property on which the Insured is or has been working where such Property Damage arises as a direct result of such work.

Sanction Clause

any legal liability to the extent that the provision of such cover payment or such Claim or provision of such benefit would expose the Insurer to any sanction prohibition or restriction under United Nations resolutions or trade or economic sanctions laws or regulations of the European Union one of its member states or United Kingdom or India or the United States of America.

War / Terrorism

any consequence whether direct or indirect of war, invasion, act of foreign enemy, hostilities, civil war, acts of Terrorism, rebellion, revolution, insurrection military or usurped power , confiscation, nationalisation, requisition or destruction of or damage to property by or under the order of any government or public or local authority.

Workers Compensation

any legal liability for which the Insured may be held liable under workman’s compensation unemployment compensation disability benefits law or any similar law.

Policy Exclusions

Aviation Products

any legal liability arising directly or indirectly from any Products which to the knowledge of the Insured are for use in or incorporation into any aircraft or other aerial device.

Care, Custody and Control

Property Damage to property owned by or leased or rented to or in the care custody or control of the Insured other than

a) Employees', directors', partners' and/or visitors' property b) premises not owned by or leased or rented to the Insured at which the Insured is undertaking work in connection with the Business.

Cross-liability

any Damage incurred by another Insured or in respect of Claim made by any Insured against another Insured.

Construction, Demolition, Alteration, Addition Works

any legal liability arising out of or in connection with or related to any project involving the construction of, demolition of, alteration of and/or addition to any building, structure or infrastructure by or on behalf of the Insured.

Employers Liability

Bodily Injury sustained by any Employee.

Electromagnetic fields (EMFs)

any legal liability arising from the exposure to EMFs and/or radiation.

GMO

any legal liability arising directly or indirectly of any Genetically Modified Organisms (GMOs).

Human T-Cell Lymphatropic Virus, Lympahadenopathy Associated Virus, etc

any legal liability arising out of or in connection with or related to any condition directly or indirectly caused by or associated with Human T-Cell Lymphatropic Virus type III (HTLV III) or Lympahadenopathy Associated Virus (LAV) or the mutants derivatives or variations thereof or any way related to Acquired Immune Deficiency Syndrome or any syndrome or condition of a similar kind howsoever it maybe named.

Product Recall / Removal/ Reinstatement

any costs or expenses incurred by the Insured for the recall, inspection, removal, repair, alteration, replacement, reinstatement of any Products necessitated by any defect therein the harmful nature thereof or the unsuitability thereof to fulfil its intended purpose.

Professional Advice

any legal liability arising directly or indirectly out of or in connection with

a) advice
b) design
c) specification
provided for a fee only and not in connection with the supply of a product.

Toxic substances

any legal liability of whatsoever nature directly or indirectly caused by or contributed to or arising from

a) Mould fungi or bacteria
b) Tobacco or any tobacco Products (or ingredients thereof)
c) Chlorofluorocarbons (CFCs) , chlorinated Hydro-carbons (CHCs), Urea Formaldehyde Foam
d) Lead,
e) Methyl Tertiary Butyl Ether (MTBE)
f) Crystalline Silica,
g) Persistent organic pollutants (POPs)
h) Atrazine
i) Diacetyl
j) Transmissible Spongiform Encephalopathy (TSE) Creutzfeldt-Jakob Disease (CJD) variant Creutzfeldt-Jakob Disease (vCJD) new variant Creutzfeldt-Jakob Disease (nvCJD) or Bovine Spongiform Encephalopathy (BSE)

Vibration, Pile Driving, Subsidence, Demolition etc.

any legal liability to pay in respect of Property Damage to land, buildings, or other structures arising from vibration, pile driving, subsidence or demolition or resulting from the removal or weakening of support, and any loss arising in consequence of such Property Damage.

Extensions

The policy can be extended on payment of extra premium to include

72 Hours Basis - Sudden and Accidental Pollution

Acts of God Extension

Additional Insured Endorsement

Advertising Injury & Personal Injury

Automatic Cover for New Subsidiaries (Non USA/Canada Domiciled Operations)

Batch Clause

Car Park Facilities Endorsement

Construction / Erection Liability Extension

Contingent Motor Liability

Contractors and Subcontractors

Consumer Protection Act and Food Safety Acts Legal Defence Costs

Control Group Notification

Court Attendants Costs

Cross Liability/Separation of Insured

Damage to Leased or Rented Premises

Designated Premises Endorsement

Designated Product Endorsement

Employers' Liability Extension

Food and Beverages Extension

Health and Safety at Work – Legal Defence Costs

Indemnity to Principal

Joint Venture Restriction Clause

Lift Liability

Liquor Liability

Medical Payments

Nuclear Damages inside nuclear power plants

Overseas Personal Liability

Products Liability Exclusion

Extended Products Liability Coverage

Products Recall Coverage

Product Recall Expenses

Specific Pharmaceuticals Exclusion List

Technical Collaborators Inclusion

Terrorism Extension

Transportation Legal Liability

United States of America/Canada Extension

Unnamed Vendors Liability Extension

Waiver of Subrogation

Work away from Premises Clause

Claims & Circumstances Defined

Claim: means any written demand or civil or administrative proceeding that seeks Damages from Wrongful Acts.

Circumstance: means an incident, occurrence, fact, matter, act or omission which may give rise to a claim.

Policyholders’ obligations

  • NOT accept any liability or make any offers of settlement, without the prior agreement of insurers.
  • There is an obligation under the policy to notify all potential claims or claims-like circumstances to the insurer as soon as practicable. So the insured is required to please advise us or the broker in case of:
  • Any demand for bodily injury or property damage as a result of a third party being on insureds premises
  • Any issue which the insured thinks might result in a potential dispute

Steps forward

  • Notification of Circumstance (as soon as practicable – on receipt of notice): By sending a mail to us.
  • Deputation of Attorney in discussion with us.
  • Obtain Consent to negotiated Settlement

What is payable under claim

  • Defense Costs (Excluding fees of in house lawyers)
  • Damages
  • Out of Court Settlements
  • Reasonable expenses if any as outlined in the respective policy