Liability Insurance Explained: Professional & General

When you're liable for damages—professional errors, public injuries, product defects—liability insurance protects you. Understand professional indemnity, public liability, and product liability.

By Nikhil Mhaskar, COO, IndSure

Liability Insurance Explained

When you're liable for damages—professional errors, public injuries, product defects—liability insurance protects you.

Types of Liability Insurance

Professional indemnity: errors in professional services. Lawyers, doctors, consultants. Premium: ₹20k–₹2L/year for ₹1cr cover.

Public liability: customer or visitor injuries at your premises. Shops, restaurants, offices. Premium: ₹10k–₹50k/year for ₹1cr cover.

Product liability: defective products causing injury or damage. Manufacturers, retailers. Premium: ₹50k–₹5L/year.

Why You Need It

One lawsuit can cost ₹10L–₹1cr+. Legal fees alone: ₹2L–₹10L. Liability insurance covers legal defense costs plus damages awarded. Without it, a business can go bankrupt.

That's the generic picture. Whether your policy pays defense costs, which claims it excludes, and up to what limit—check what YOUR policy actually says.

Frequently asked questions

What's the difference between professional and public liability?

Professional indemnity = errors in your professional work (wrong advice, negligence). Public liability = injuries to customers/visitors at your premises (slip and fall, property damage).

How much coverage do I need?

Minimum ₹1cr. High-risk businesses (healthcare, construction) need ₹5cr–₹10cr. Coverage amount = maximum lawsuit you could face. Higher coverage = higher premium.

Is liability insurance mandatory?

Public liability often required by landlords, contracts. Professional indemnity required by professional bodies (doctors, lawyers, architects). Check your industry requirements.