Public liability insurance

General Liability Insurance

Suppose an accident occurs through the fault of your company that causes damage to the life, health or property of a third party. You will likely have to pay compensation or substantial legal fees. You may also be held liable for environmental damage. Article 1064 of the Civil Code states that those who cause damage to an individual or property belonging to a citizen or legal entity must pay full compensation to the victims

Why do you need general liability insurance?

Companies you do business with may insist that all contracts have an insurance clause

Contracts between landlords and tenants often include clauses on liability

Insurance claim events in foreign countries often involve litigation under different legal regimes with unclear legal consequences, and payouts can be much higher than in Russia

Protecting your company’s financial performance for the year: budgeted cost of insurance or the probability of sudden and huge uninsured losses

Accidents and losses occur even in companies with effective corporate governance

Product description (benefits, objects of insurance, risks, additional coverage)

A general liability insurance policy protects the property interests of the insured related to obligations that arise as a result of injury to the life, health, or property of a third party that occurs while directly engaging in the activity covered by the policy.

Our advantages:

We work in all sectors, including energy, construction, oil and gas, the food industry, chemical production, real estate, etc.

We have sufficient resources to provide a large volume of financial capacity (limits of liability up to US$100,000,000 or the equivalent in Russian rubles at the Central Bank’s rate on the day when the contract is signed) in Russia without the need for facultative reinsurance from other reinsurers

AIG operates in 160 countries and jurisdictions and provides fast settlement services in all of them, whether you’re a transnational corporation or a small or medium-sized business operating in a single country

Financial stability

International experience

Flexible and individual approach

We can issue a single insurance policy covering general liability, product liability, contractor’s liability, service provider’s liability and employer’s liability

We issue policies in both Russian and English, allowing you to quickly negotiate the wording of insurance contracts with companies that require them

Public liability insurance covers you for the cost of a claim made by a member of the public that has suffered injury or property damage as a result of your business or a product it has supplied. This means that it protects you against the cost of compensation to be paid out, as well as the legal expenses incurred by the claims process.

This could mean anything from a client or member of the public slipping on a wet floor on your business premises, to tripping over your work equipment when you’re visiting them at theirs. It also covers you for damage to property. For example, if a member of the public were to claim you’d broken their laptop whilst visiting them on business, you’d be covered for the cost of compensation owed to them, up to the limit of your policy.

Our video guide to public liability insurance

We’ve pulled together this short video to help you decide whether public liability insurance is right for you:

Do I need public liability insurance?

If your business premises are visited by clients, or if your employees regularly work off-site, it may be worth considering this type of cover. If you work from home, you might assume you don’t need a policy, but this isn’t necessarily the case.

Say for example, you decide to take a marketing stand at your industry’s big trade show to get some publicity for your firm. But during the show one of the boards falls off and injures a passer-by – an embarrassing episode could turn into a costly one if that person decides to sue.

Also, if you visit clients’ premises or have access to their equipment then it’s worth considering buying public liability cover, because if you inadvertently damage their property you may have to pay the cost of repairing or replacing it.

It could be something as simple as knocking your cappuccino over your client’s new MacBook or one of your employees tripping over in a client’s server room. He brings a stack of expensive computer equipment down as he falls, which might seem like a classic ‘You’ve Been Framed’ moment at the time. But the £250 you’d earn from the trip (pardon the pun) wouldn’t begin to cover the cost of a new server when your client sends you the bill.

How much does public liability insurance cost?

How much you pay for cover depends on the size and type of your business, and the level of risk it undertakes. Discuss this with your insurer before you buy your policy in order to assess what level of cover provided is right for your business. You may find clients expect you to have a minimum level of cover, according to your area or industry. This is often the case for businesses working with the public sector where the minimum requirement is usually between £5-10 million.

Is public liability insurance a legal requirement?

Choosing not to purchase public liability insurance will not land you with a jail sentence or a hefty fine. But having the right insurance can make your business look more professional and offer you peace of mind. You don’t want to get into a spat with one of your best clients over the consequences of an accident or damage to one of their properties. Getting a public liability policy means you can let your insurer deal with any problems, while you get on with running your business.