Business liability policies in India compared
The main liability covers bought by Indian businesses, compared on what they do, who needs them and what to watch.
This table compares types of liability cover commonly sold to businesses in India. It does not rank insurers or show real prices, because premiums depend on your activities, turnover, limits, claims history and the insurer's own rating. Use it to decide which covers to ask for, then compare actual quotes like for like with the liability quote comparison tool. Select a column header to sort, or filter by keyword.
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| Cover | What it responds to | Typical buyers | Watch out for |
|---|---|---|---|
| Public Liability Act policy (PLI Act, 1991) | No-fault relief to people affected by an accident involving hazardous substances, at amounts prescribed in the PLI Rules | Owners who handle notified hazardous substances above threshold quantities; compulsory for them | Relief amounts are capped (₹5 lakh per death since the December 2024 Rules); it does not replace fault-based liability cover, so most such firms also buy a public or CGL policy |
| Public liability policy (industrial) | Legal liability for third-party injury or property damage arising from factory or industrial premises and operations | Manufacturers, workshops, warehouses | Often excludes products, pollution other than sudden accidents, and work away from premises unless extended |
| Public liability policy (non-industrial) | Third-party injury or property damage at premises such as shops, offices, hotels, schools and clinics | Retailers, hospitality, offices, educational institutions | Activities outside the declared premises and events may need separate cover |
| Commercial general liability (CGL) | Premises, operations and products/completed operations liability in one policy, usually with personal and advertising injury | Mid-size and larger firms, contractors, exporters, companies with group or client mandates | Occurrence or claims-made trigger; retroactive date; jurisdiction and territory limits; exclusions for contractual liability |
| Product liability policy | Liability for injury or damage caused by a defective product you manufacture, sell or service | Manufacturers, importers, brand owners, sellers, e-commerce sellers | Recall costs and the cost of replacing the product itself are usually excluded; exports to the USA and Canada are priced separately |
| Employees' compensation policy | Employer's liability to pay compensation for employment injury under the Code on Social Security, 2020 (formerly the Employees' Compensation Act, 1923) | Employers with workers not covered by ESI, contractors, construction firms | Premium based on declared wages by job category; under-declared wages or missing categories cause disputes |
| Professional indemnity | Claims for financial loss caused by negligent advice or services | Consultants, architects, IT firms, accountants, healthcare professionals | Almost always claims-made; keep continuous cover to protect past work |
| Directors' and officers' (D&O) liability | Claims against directors and officers for wrongful acts in their management role, including defence costs | Companies with boards, listed companies, start-ups with investors | Fines and penalties, fraud and prior known matters are typically excluded |
| Cyber liability | Data breach, privacy claims and incident response costs | Businesses holding customer data, payments or online services | Sub-limits for ransom and regulatory matters; security conditions in the proposal |
Policy names and wordings differ between insurers, and the same name can hide different cover. Always read the policy wording, schedule and endorsements, not only the brochure. Check that an insurer or broker is registered with IRDAI, read the Public Liability Insurance Act, 1991 and the Consumer Protection Act, 2019 on India Code, and check employer obligations with the Ministry of Labour and Employment. This table is general information, not advice for a specific business.