The policy covers the amount which the insured becomes legally liable to pay as damages to third parties as a result of accidental death, bodily injury, loss or damage to the property belonging to a third party.
The legal cost and expenses incurred in defending the case with prior consent of the insurance company are also payable subject to certain terms and conditions.
One can insure more than one unit situated in different locations under a single policy.
The policy offers a benefit of Retroactive period on continuous renewal of policy whereby claims reported in subsequent renewal but pertaining to earlier periods after first inception of the policy, also become payable.
Legal liability under the Law of Tort can arise under several circumstances on the insured's premises for example:
Collapse of building structure
Accidental falling of fixtures
Bad maintenance or poor housekeeping resulting in accident to visitors on the premises
Accidental leakage of toxic substances which pollute the atmosphere and injures or kills people