This type of policy covers the insured’s liability to members of the public, such liability arising as a result of his business operations. The business being conducted by the insured in his/her premises may sometimes lead to death, injury or accident to third parties, or damage to third party’s properties.

The factors to be taken into consideration when underwriting this type of risk are as follows:

1.The nature of the proposer’s business.

2.The environment in which the business is being conducted.

3.The likelihood and extent of damage that can be caused to third parties'
properties.

4.The likelihood and extent of death or injury to third parties arising from the proposer’s business operations

Usually, there is a limit of liability for anyone occurence and an unlimited limit of liability during anyone period of insurance.