Public Liability Insurance Policy and Coverage in Malaysia
Public Liability Insurance in Malaysia
Public liability insurance policy in Malaysia is used by business to pay claims for injury and damage to the public or other third parties. The insurance company pays the claimant when the claim is found to be legally valid.
This usually covers the legal costs as well as the damages to be paid. This payment is per the laws of Malaysia on liability and damages.
Public Liability Insurance Coverage in Malaysia
Public Liability Insurance is for Third Party Claims
Public liability insurance covers claims from third parties in Malaysia. These claims would be from damages suffered in Malaysia or territories due to business operations, as covered by the insurance policy taken.
Public liability insurance coverage of damages to third parties are for:
- Injuries to people
- Death of people
- Damages to property
- Total loss of property
This excludes claims from employees
Public Liability for Claims
A business has activities, equipment and fixtures that have known possible risks. So, by Malaysian law, the business has a general duty of care to ensure the safety of the public and its employees from known risks in its operations.
The Public Liability Insurance covers this business operations risks, in the unfortunate event that a third party has suffered damages.
Business General Duty of Care
The business takes care that its business operations are according to best practices or regulations. Ensuring safety and minimizing the risk of injury or property damage to the members of the public from its operations.
Other Business Liabilities
This public liability indemnification is separate from employers liabilities, project liabilities, product liabilities, marine liabilities and professional liability cover on claims for direct injury or property damage from the public or employees.
See the complete list of liability insurance in Malaysia and details at:
- Liability Insurance
Why do we need Public Liability Insurance?
Businesses need to be protected from a liability that arises from accidents in a business premise or operations. Work being done and in-store activities can potentially go wrong due to unforeseen events. The public can be injured or their property is damaged by these events.
What is an example for a public liability claim?
Members of the public in contact with the business, for example, walking on a footpath on the business premise or factory area. If they were to be injured or their property got damaged while on that footpath, they have grounds for public liability claims. They can suspect it to be due to negligent work practices. They can file a claim for compensation from the business because of this.
What is the coverage provided by the Public Liability Insurance?
This policy covers you from all sums of public liability claims. In the event, you are found to be legally liable to pay compensation for a claim. This is only for claims for accidental bodily injury and accidental damage of property. For claims made by third parties. Claims made by employees are covered by Workers Compensation Insurance.
What is the level of coverage for a public liability claim?
The level of cover and limit of liability depends on several factors. On the personal injury possible. On possible expenses for legal requirements for defense procedures. On the nature of the business and its impact on the public. A risk study can also be used as a basis to estimate possible costs potentially arising from business operations. Contact us to find out how we cover for your unique situation.
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