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Bharat Laghu Udyam Policy Coverage
Jan 17, 2024

Essentials Of Public Liability Coverage In Bharat Laghu Udyam Suraksha Shopkeepers Package Policy

The Bharat Laghu Udyam Suraksha Policy, a comprehensive insurance offering for micro-enterprises in India, plays a crucial role in safeguarding businesses against various risks. Among its many components, public liability coverage stands out as an essential aspect. Let’s delve into the essentials of public liability coverage within this Shopkeepers Package Policy, understanding its significance and the protection it provides to micro-enterprises.

Bharat Laghu Udyam Suraksha Policy: A Basic Overview

It is a specialized insurance policy designed to meet the insurance needs of micro-enterprises in India. These businesses, often referred to as Micro, Small, and Medium Enterprises (MSMEs), contribute significantly to the Indian economy. The Bharat Laghu Udyam Suraksha Policy aims to provide a comprehensive insurance solution, covering various risks these enterprises might face.

Significance of Public Liability Coverage

It is a critical component of the Bharat Laghu Udyam Suraksha Policy, addressing the potential risks and financial liabilities that an enterprise may encounter during its operations. Public liability refers to the legal obligation of a business to compensate third parties for injury, loss, or damage suffered due to the business activities.*#

Inclusions of Public Liability Coverage

The following are some of the inclusions offered under the public liability coverage in this MSME insurance policy:

Coverage for Third-Party Bodily Injury

Public liability coverage in the Bharat Laghu Udyam Suraksha Policy extends to bodily injury caused to third parties due to business operations. This could include scenarios where a customer, vendor, or any other individual is injured on the business premises or as a result of the business activities.*#

Property Damage to Third-Party Assets

The policy also provides coverage for damage to third-party property caused by business operations. For example, if a business's activities result in damage to a customer's property, the public liability coverage steps in to compensate for the loss.*#

Legal Expenses Coverage

Public liability claims often involve legal proceedings. The policy includes coverage for legal expenses incurred in defending the business against such claims. This can include lawyer fees, court costs, and other legal expenses necessary for the defense.*#

Policy Limits and Deductibles

The policy will have specific limits on the coverage amount, outlining the maximum amount the insurer will pay for a covered claim. Deductibles, if any, represent the amount the insured must pay before the insurance coverage comes into effect.*#

Exclusions Of Public Liability Coverage

The following are the exclusions of the coverage offered under this general insurance policy:
  1. Accident caused deliberately or on purpose*#
  2. Injury caused to an employee of the insured during that individual’s employment*#
  3. Accident caused to gain profit*#
  4. Accident or Damage caused due to a product of the insured*#
  5. Damage caused due to the pollution arising from the insured’s enterprise*#

Benefits of Public Liability Coverage

As a business owner, the following benefits of the public liability coverage might convince you to purchase this MSME insurance policy:

Financial Protection

Public liability coverage ensures that the financial burden of compensating third parties for injuries or damages does not fall solely on the micro-enterprise. It provides financial protection, allowing the business to continue its operations without significant disruptions.*#

Legal Support

Legal expenses can be substantial in liability claims. The policy's coverage for legal expenses ensures the business has the necessary resources to mount a defense and navigate legal proceedings.*#

Enhanced Business Reputation

Resolving liability claims efficiently and compensating affected parties positively impacts the business's reputation. Public liability coverage helps in managing and mitigating reputational risks associated with such incidents.

Tailored to MSME Needs

The policy is specifically designed to cater to the insurance needs of micro-enterprises, considering their scale, operations, and potential risks. This ensures businesses get coverage that aligns with their unique characteristics.


Public liability coverage within the Bharat Laghu Udyam Suraksha Policy serves as a protective shield for micro-enterprises, shielding them from potential financial losses and legal challenges arising from third-party claims. As MSMEs continue to play a pivotal role in India's economic landscape, having robust insurance coverage becomes increasingly critical. Micro-enterprises are encouraged to assess their risk exposure, understand the coverage provided under this policy, and take proactive steps to secure their financial stability in the face of unforeseen events.   *Standard T&C Apply #Visit the official website of IRDAI for further details. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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