What the policy covers

General liability insurance (liability for harm caused to third parties) compensates harm that a company or its employees, in the course of their duties, cause to the life, health or property of other people and companies. The beneficiary under such a contract is the injured party (Article 931 of the Civil Code), and the harm itself is compensated under the rules of Chapter 59 of the Civil Code.

Typical risks included in the policy:

  • Premises and operations — a visitor slips in a shop, a sign falls, a leak floods the neighbours below.
  • Liability when performing work and services — damage to a client's property during installation, repairs or cleaning.
  • Product liability — harm caused by defects in goods the company makes or sells.
  • Tenant's liability — damage to rented premises, for example in a fire.
  • Employer's liability — employee claims in excess of compulsory social insurance benefits.

Besides direct compensation, the policy usually covers reasonable costs of mitigating losses and legal costs if agreed with the insurer.

Who needs it

  • Shopping centres, shops, restaurants, hotels, fitness clubs — places with heavy foot traffic.
  • Manufacturers and distributors of goods.
  • Construction, installation and repair companies, housing management companies.
  • Event organisers, cleaning and security companies.
  • Tenants whose lease requires insurance.

The law, SROs and counterparties

General liability for businesses is insured voluntarily. Compulsory liability insurance is set by separate laws for specific activities — for example, for operators of hazardous facilities (OSOPO, Federal Law 225-FZ) and passenger carriers (OSGOP, Federal Law 67-FZ). Such policies do not replace general liability: they have their own scope and limits.

Where requirements come from in practice:

  • SROs (self-regulatory organisations). The Law on Self-Regulatory Organisations (315-FZ) provides for insurance of members' liability as a way of securing their financial responsibility. Many SROs in construction, design and engineering surveys operating under the Russian Town Planning Code require members, through internal standards, to hold a liability policy with a set minimum limit.
  • Public procurement under 44-FZ and corporate procurement under 223-FZ. The customer may include in the draft contract an obligation for the contractor to insure its liability and present the policy by a set deadline.
  • Leasing and property management. Landlords and shopping-centre management companies often require a policy from tenants.
  • Large clients and retail chains require product liability policies from suppliers.

Key contract parameters

  • Limit of liability — aggregate and per occurrence, sometimes with separate sub-limits for bodily injury and property damage.
  • Deductible — the part of the loss the company pays itself.
  • Coverage trigger — what counts as the insured event: harm caused during the policy period or a claim made during that period.
  • Territory — specific addresses, a region or the whole of Russia.

What drives the price

  • Type of business and how hazardous it is to others.
  • Revenue, floor area, visitor numbers, headcount.
  • Chosen limits, sub-limits and deductible.
  • Inclusion of product liability and export supplies.
  • History of claims and lawsuits.

How to choose an insurer

Compare policy wordings: what counts as an insured event, which exclusions apply (wilful acts, fines and penalties, contractual liability, environmental pollution, etc.), and whether legal costs are covered. If you need the policy for an SRO or a tender, agree the wording with them in advance. Review companies in the insurer directory.

Claims handling

  1. When you receive a claim from an injured party, do not admit liability or pay compensation without the insurer's consent — otherwise it may refuse to accept those costs.
  2. Notify the insurer within the time limit set by the contract and pass on a copy of the claim.
  3. Collect documents: incident reports, staff statements, video footage, medical certificates, damage assessment.
  4. The insurer investigates, determines the amount of harm and pays the injured party or takes part in court proceedings.

Common mistakes

  • The policy covers one address, but the harm happened at another site or during off-site work.
  • The limit is too low for the real risks: bodily injury and major property damage exhaust it quickly.
  • Expecting the policy to cover defects in your own work or contractual penalties — these are usually excluded.
  • Settling a claim "quietly" without the insurer.

Related types: professional liability, construction all risks, commercial property. To compare terms from several companies, submit a request to Polis Re specialists.