Business Liability Insurance

Product Liability Insurance: A product liability insurance policy protects you against customer claims arising due to accidents caused by your product’s performance. For example, a cell phone customer may sue the manufacturer of the phone if it explodes while charging or if it injures the customer in anyway. Such lawsuits can cost the company millions in the absence of a proper product liability insurance. Packaged food companies may also face claims related to health and wellness damage due to food consumption.

Professional Liability Insurance: This liability insurance covers you from financial and legal costs associated with claims made against you or your company due to lapses in the performance of professional services. A professional liability insurance can come in handy if you face liabilities due to such damage.

Public Liability Insurance: Public liability insurance protects you from claims made against your company, products or employees which might have harmed general public. In India, it is mandatory for business operating in hazardous areas to enrol into a public liability insurance as per the Public Liability Insurance Act, 1991. For other businesses, it is not mandatory, but is highly recommended.

Third Party Liability Insurance: A third party liability insurance is mandatory when you buy a new vehicle. You are not allowed to drive the vehicle unless you have a third-party liability insurance. Any human injury or property damage caused to a third party by your vehicle is covered under this insurance.

Employers’ Liability Insurance / Workmen’s Compensation Insurance: The employers’ liability insurance covers the owner or management of the company against claims by the employees. Employees may claim compensation for any kind of losses or injuries caused due to the organisational environment or infrastructure. For instance, a worker may get injured due to the chemicals he works with in a factory, or an employee might suffer from food poisoning due to the canteen food. Such unexpected situations might require you, as a business owner, to compensate the employees for such damage. Under such circumstances, employers’ liability insurance can indemnify your employees against any such unfortunate events and save you from hefty financial outgoes and legal hassles.