1. What is public liability insurance and how it can protect businesses
  2. Public liability insurance following Terrorism Attack


  1. What is Public Liability Insurance?

In simple terms is called ‘Financial blanket’ for Business & Property owners.

In general terms when accidents result in injury to a company’s or even property owners (Large or Small) customers or property, it’s easy for them to be put at risk of fines, lawsuits and a damaged reputation. Although public liability insurance is not required by law, every business owner should take advantage of such insurance to maximise security and protect their business. Regardless of the industry a business operates within, public liability can be used to protect against unwanted personal injury claims. Although it may take every precaution to prevent accidents, sometimes they’re inevitable.


In retail environments, for example, wet floors to lead to an accident, while contractors could suffer a lawsuit if a ladder smashes into a car window. Businesses have long been sued for breach of duty or negligence, and public liability insurance is offered to protect businesses from the penalties or court cases that could otherwise cause significant financial difficulty for small and medium-sized businesses.

Public liability insurance gives business owners added peace of mind. If there is an accident and a member of the public is injury, public liability insurance can be relied upon to cover the cost of legal fees, expenses and medical treatment for the concerned parties.

As it is a general practice that  there are certain exclusions which requires attention and following particular exclusion has been brought to prominence due recent attacks on property by terrorists whereby there was considerable loss of life, injuries and property damage to & of the public visiting those premises.

Whilst under normal circumstances, in absence of terrorism, the claims would be met by Insurers’ but in this instances many premises and property owners were not aware or did not have the required protection and members of public suffered in those premises during a terrorist attack.  Whilst some business owners had purchased ‘Political Violence & Terrorism cover’ to protect their stocks & assets but their customers were exposed to the peril of Terrorism.

  1. Public liability insurance following Terrorism Attack


For this we need to understand what is defined as terrorism and how the policy cover operates:


provided always that such claims arise out of an Occurrence as defined herein that takes place during the policy period, for Bodily Injury and/or Property Damage and/or Defence Expenses resulting solely and directly from an Act or acts of Terrorism and/or Sabotage as defined herein.

To indemnify the Insured in respect of their operations, for their Ultimate Net Loss by reason of the liability imposed upon the insured by law for monetary damages in respect of:




This policy is subject to the following definitions:-


For the purpose of this Insurance, an Act of Terrorism means an act, including the use of force or violence, of any person or group(s) of persons, whether acting alone or on behalf of or in connection with any organisation(s), committed for political, religious or ideological purposes including the intention to influence any government and/or to put the public in fear for such purposes.


An Act of Sabotage means an act or series of acts of deliberate damage or destruction of property by secret means committed for subversive, political, religious or ideological purposes including the intention to influence any government and/or to put the public in fear for such purposes.


The words “Bodily Injury”, wherever used in this policy, shall mean all physical injury to a third party human being including death, sickness, disease or disability and all mental injury, anguish or shock to such human being resulting from such physical injury,

 In Summary


Law is quite clear on issue of Protection of public in places/premises where public frequents and the liability rests on the owner/s for safety of the public.


  1. Above articles are summarized for ease of comprehension
  2. Above articles appeared in technical Insurance trade magazines/ internet and all authors are acknowledged.
  3. Reader’s input would be appreciated.
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