What is Bodily Injury in Liability Insurance?

Bodily Injury in Insurance is defined as bodily injury, sickness or disease sustained by a Third Party, including death resulting from either the Insured’s business operations or as a consequence of consuming the Insured Company’s products.

Which types of Insurance Policies provide coverage for Bodily Injury?

Following types of Insurance Policies provide coverage for Bodily Injury

1. Commercial General Liability Insurance
2. Public Liability Insurance
3. Product Liability Insurance
4. Workmen’s Compensation Insurance Policy

The CGL Insurance Policy, Product and Public Liability Insurance Policy provide coverage when a Third-Party suffers Bodily Injury at your business premises or falls ill by consuming your Company’s Products while a Workmen’s Compensation Insurance Policy provides coverage when the Insured’s employee suffers Accidental Death or Disability during the course of employment. A CGL Insurance Policy or a Product Liability Insurance Policy will provide coverage for Defence Costs and Compensatory Damages in case of a Bodily Injury Claim.

Bodily Injury v/s Personal Injury

A Commercial General Liability Insurance Policy also provides coverage for Personal Injury. Though these terms are used interchangeably, in Insurance, a Bodily Injury Claim arises from a Third Party getting physically injured while a Personal Injury Claim arises from damage to someone’s reputation.

A CGL Insurance Policy typically defines Personal Injury as an injury, including consequential bodily injury, arising out of one or more of the following offences: - False arrest, detention or imprisonment; - Malicious prosecution; - The wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling or premises that a person occupies, committed by or on behalf of its owner, landlord or lessor

Which types of businesses need Bodily Injury Liability Coverage?

Bodily Injury Liability Coverage usually means a Commercial General Liability Insurance Policy. Most business owners require a CGL Insurance Policy which provides Bodily Injury Coverage and specially businesses which have frequent public visitors like Cinema Halls, Restaurants, Hotels should definitely purchase a Commercial General Liability Insurance Policy. Accidents can happen anytime and without appropriate Insurance Coverage, the business owner would be responsible for medical payments and defence costs. Sometimes these costs add up to lakhs of rupees. Thus, it is extremely important to purchase a CGL Insurance Policy which will provide coverage against expensive lawsuits, should such a need arise.

How much Bodily Injury Liability Coverage do I need?

Though there are no specific laws mandating minimum amount of Insurance Coverage for Bodily Injury Liability in India, a basic CGL Insurance Policy with an Aggregate Limit of Liability of Rs1 Crore is recommended. This Limit of Liability can be higher if the size of the business operations is larger or if the nature of business is risky, thus resulting in a higher risk exposure.

Conclusion

A single bodily injury claim can set back a business by years and thus a CGL Insurance Policy is a must have for all businesses. Qian is an experienced Insurance Broker for commercial insurances and can assist you with the best quotes and comprehensive coverages for your Commercial General Liability Insurance Policy. Apart from CGL Insurance Policy, our team can also assist you with other insurances such as Cyber Insurance Policy, D&O Liability Insurance Policy, Product Liability Insurance etc. Get a Quote Today or email us at insurance@qian.co.in or call us on 022-35134695. We would be glad to assist you.