You get so many visitors in your office premises on a day to day basis like customers, vendors etc. You must cover your business from all financial risks arising out of third party loss due to, say,
- Collapse of building structure.
- Accidental falling of fixtures.
- Bad maintenance in premises leading to accidents.
- Leakage of toxic substance leading to accidents.
A Public Liability Policy covers all sums (including the legal costs) that you would be legally liable to pay as damages as a result of
- Accidental death / bodily injury or disease to a third party.
- Accidental damage to the property belonging to the third party.
In a Public Liability Policy, the sum insured is referred to as Limit of Indemnity. While selecting the sum insured for your policy, the limit is chosen based on AOA (any one accident) and AOY (any one year). The AOA limit is the maximum amount payable per accident and should be fixed depending on the type of activity in your premises and the third party damage it can cause in case of an accident.