Understanding Public Liability Coverage In Shopkeepers Package Policy

If you are a businessperson or an entrepreneur, you will probably be familiar with risks. Operating and growing a business can mean taking risks. However, apart from the risks that can help increase your business, there are many other risks that can negatively affect your enterprise. It is to protect against these risks that the Shopkeepers Package Policy has been designed. When an unfortunate event strikes the business, its daily operations can be affected. With this general insurance policy and the financial support it provides, enterprises can get back on their feet comparatively faster. The Shopkeepers Package Policy provides coverage against various events and risks. One such coverage aspect is the public liability cover. According to this cover, the policy provides financial support in case the business faces a public liability. Let’s learn more about the public liability cover.

Scope of Public Liability Cover in Shopkeepers Package Policy

As per the wording of the Shopkeepers Package policy, the liability of the insurer will be as follows:*

1. The insurer shall indemnify the insured for their legal liability (including defence costs), in settling damages for third-party civil claims arising from bodily injury or property damage within the business premises during the policy period.
2. This coverage applies to accidents reported in accordance with the policy terms within the stipulated period.
3. Additionally, the insurer shall, up to the limit of indemnity, cover all costs, fees, and expenses associated with the investigation, defence, or settlement of any claim.
4. The insurer shall also bear the costs of the insured's representation in civil inquests, inquiries, or related proceedings directly relevant to an actual or anticipated claim falling under the policy terms.
5. It is to be noted that all amounts spent by the company on claims or defence costs shall be deducted from the limit of indemnity.

With such extensive support, the insured entrepreneur can navigate business challenges related to public liability with confidence. They can rest assured, knowing that the public liability cover is available to support them throughout their claims journey. Claims are subject to terms and conditions set forth under commercial insurance policy. The public liability coverage of this shopkeepers insurance policy is subject to special conditions specified in the policy. Let’s look at some of them.

Special Conditions of Public Liability Cover

Here are some vital conditions applicable to the cover -

1. The insured must promptly, and in any case, within 14 days, provide written notice to the insurer at the specified address in the policy schedule under the following circumstances: a. Any claim made against the insured during the policy period. b. Any circumstance occurring during the policy period that might reasonably be expected to give rise to a claim.

2. The insurer requires the insured's consent before settling any claim. If the insured refuses to approve a settlement recommended by the insurer and chooses to contest or prolong legal proceedings, the insurer’s liability will not surpass the amount for which the claim could have been settled, along with the costs and expenses incurred up to the date of refusal.

3. At its sole discretion, the insurer may make a payment to the insured, covering the available amount under the limit of indemnity or any lesser amount for which the claim can be settled (whichever is lower). This payment constitutes a full and final settlement of all company liability to the insured under this shopkeepers insurance policy concerning that specific claim.

4. The insured must maintain precise records of its yearly turnover, inclusive of all taxes and duties paid. Upon request, the insured shall grant the insurer access to these records. The latter retains the right to inspect any property of the insured at a reasonable time.

5. In case of persistent inhalation, ingestion, or application of any substance due to an insured event, if a disagreement arises between the insured and the insurer regarding the timing of bodily injury or property damage, the following shall happen: a. Bodily injury is deemed to have occurred when the claimant initially consulted a qualified medical practitioner for the same. b. Property damage is deemed to have occurred when it first became physically evident to the claimant, regardless of whether the cause itself was known.

Additional Points to Keep in Mind

In addition to the above, the Shopkeepers Package policy is also subject to special exclusions mentioned in the relevant section of the policy. To understand the conditions as well as the special exclusions better, please refer to the policy wordings. This Shopkeepers Package policy covers many other aspects along with providing public liability cover. Some points of coverage include building and contents cover, burglary and robbery cover, money insurance cover, plate glass insurance cover, breakdown of business cover, and so on.* All coverages, including public liability cover, are subject to general conditions and exclusions specified in the MSME insurance policy document. Claims are subject to terms and conditions set forth under commercial insurance policy.   * Standard T&C apply. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.