This policy indemnifies against amounts the insured is legally liable to pay as damages to third party victims of an accident. These include:
- Compensation for accidental death, bodily injury or disease to third parties.
- Damage to or loss of property belonging to third parties arising out of an accident, including legal costs incurred with the prior consent of the insurer.
- Legal and Civil liabilities of the directors and officers of the company.
The following optional covers are available for additional premium:-
- Pollution risks caused by a sudden, unintended and unexpected cause which takes place at a specific time and place during the policy period.
- Transportation risks outside the premises arising out of an accident directly caused by dangerous materials or hazardous substances while being transported by rail, road, or pipeline.
- Cover for multiple units: Non manufacturing premises of the insured such as offices, depots, godowns etc located at different places, incidental to the insured’s business activities can be covered.
- Policy covers all amounts the insured is legally liable to pay the third party during the policy period including legal costs, and expenses subject to the limit of indemnity terms and conditions of the policy.
- Policy cannot be issued for unlimited liability.
- A rate between 0.1% and 0.5% on limit of liability is charged depending on the nature of insured business.
- IGI may, at its discretion, permit mid term increase/decrease in the limit of indemnity during the policy period.
- Discounts are offered for optimal higher excess.
- All policies subject to an excess of 10% of the claim. Any accident with a lower limit of N25,000 this excess is applicable both to property damage and death/bodily injury claims.
A proposal form duly filled along with a declaration by the proposer that all the statutory requirements relating to the business activities are complied with, are required.
As the prevailing public law is stringent and the courts are awarding huge sums arising out of liabilities, it is prudent to take such an insurance cover even in cases where it is not mandatory.