Liability insurance primarily provides protection against third party liability. Third party liability includes death, injury, diseases and property damage. 

Liability Insurance provides protection to various sections of the society such as directors, employees, manufactures, housing societies, software companies, news channels etc. 

Kinds of Liability Insurance in India 

Public Liability Insurance: This policy covers any damage to property or bodily injury against which the insured is sued by the third party. There are two types of policies industrial and non-industrial. Industrial policy cover public liability of industries such as manufacturing industry and non-industrial policy suited for offices, hotels etc. 

Product Liability: This policy covers legal liability to settle the liability claims. It protect against any bodily injury suffered by third party arising out of use of product of insured. (Example: suited for pharma companies, mobile manufactures etc.) 

Directors & Officers Liability: The policy provides protection to directors and officers of large companies against- legal judgments and costs arising from unlawful acts, wrongful investment decisions, releasing confidential information, hiring and firing decisions, conflicts of interest and errors under many other scenarios.  

Errors & Omission Liability: This policy provides protection against claims filed by any third party for injury or property damage that is caused due to negligence in professional services by the insured. This policy is not for professionals. (Suited for software companies, KPO, BPO). 

Professional Indemnity: provides cover for claims brought against the policyholder due to their professional negligence. Policy is well suited for the professionals such as doctors, engineers, lawyer, medical establishments etc.  

Workmen Compensation: This offers legal liability protection to employers in case of injury or death of an employee, who is a ‘workman’ as per the Workmen Compensation Act. 

Liability insurance policies that provide compensation against legal and defense cost of insured.

It should be noted that insurance company will not provide you any claim if you as a insured proven wrong in the court. Insurance company never provides claims for fines and penalties charge on insured. Insurance company in any case will never encourage criminal activity. 

Without liability insurance you are leaving you and your company vulnerable to lawsuits which can have devastating effect on your company. Therefore it is important to purchase liability insurance and stay protected against varied liabilities. 

Know More about Liability Insurance Policies.