An organization may be held liable for injury to others or damage to their property as a result of negligence or other torts. Such liability, if proved, may result in heavy financial burden which the organization may find very difficult to pay.
Apart from liability arising from the occupation or operation of an organisation on their premises, the policy may be extended to include product liability which implies reimbursement for liability attaching from goods sold or consumed.
Generally, the basic public liability policy offers reimbursement against legal liability incurred from third parties for:-
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