The Risk

Organizations today are exposed to litigation and consequent financial losses arising from legal wrongs or torts which may result from bodily injury and property damage caused to a third party for which they may be held legally liable.The Solution

Howden India provides General Liability Insurance or Commercial General Liability (CGL) policy that provides comprehensive coverage faced by an organization against liability losses arising out of legal wrongs or torts which may result from bodily injury and property damage. An unintentional injury to a person or property as a result of negligence is the primary scope of a General Liability Insurance or Commercial General Liability (CGL) policy. It is a modular policy that can provide coverage in several combinations.

The Cover

Coverage is provided for most of the premises, products completed operations, personal injury, advertising injury and contractual liability exposures of an organization. These are covered only if the occurrence that gave rise to the liability takes place in the coverage territory and during the policy period.

The policy usually provides the following coverage:

A – Cover for Bodily Injury and Property Damage arising out of premises operation or products/ completed operations

B – Personal and Advertising Injury Liability to a third party resulting from an offence committed during the course of business. This includes:

  • Oral or written publication of material that slanders or libels a person or organization or disparages a person’s or organization’s goods, products or services; separately to each Insured against whom claim is made or "action" is brought.

C – Medical Payments of injured third parties, regardless of fault.

D – Fire Damage to the premises rented to you or temporarily occupied by you with the permission of the owner.

Major Exclusions

  • Any intended, expected or such liabilities, which the insured is under normal circumstances not liable to pay but is now paying by reasons of assumption of liability - are not covered.
  • Liabilities, which are already covered by other policies by operation of statute, like Liabilities arising under Workmen Compensation. Liabilities, which arise while performing duties related to the conduct of the Insured’s business, are not covered.Professional Liabilities are not covered.
  • Property damage to impaired property arising out of:
  • A defect, deficiency, inadequacy or dangerous condition in the product or
  • A delay or failure by anyone acting on behalf of the company to perform a contract or agreement in accordance with its terms.
  • This exclusion does not apply to the loss of use of other property arising out of sudden and accidental physical injury to the software after it has been put to its intended use.
  • Damage to the Insured’s product or work.
  • Recall of Products, works or impaired property and Product guarantees.
  • Errors and Omissions.

Other Salient features

  • Geographical coverage and jurisdiction can be worldwide
  • Additional insured can be granted cover under the same policy
  • Covers defense cost
  • Subsidiary companies could be covered under single policy