Organizations can be dragged to court in today's litigious environment for various reasons (right or wrong). It can be for an injury to a visitor on their premises, damage to some adjoining property due to their negligence, or damage caused by one of their employees to someone else's property while working. If the concerned authorities hold an organization responsible for the resultant damages, the payout can potentially be in millions. Hence, all organizations need to have this policy in some form or the other. Cost of defending such actions can also be covered under this insurance.


The standard policy form in most cases would need customization to ensure that a wider range of potential liabilities would be covered.