Organizations can be dragged to court in today’s litigious environment for various reasons. It can be for an injury to a visitor on your premises or damage to some adjoining property due to your negligence or one of your employees damaging someone else’s property in the course of doing work to name a few reasons.
If the concerned authorities hold you responsible for the resultant damages the payout could potentially be large. Hence, all organisations need to have this policy in some form or the other. Cost of defending such actions can also be covered under this insurance.
The standard policy form in most cases would need customization to ensure that a wider range of potential liabilities would be covered. Any company whose operations of whatsoever description could possibly incur liability to third parties should be protected by this cover.
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