Liability Insurance
What is Liability Insurance
Description of Liability Insurance
Liability Insurance is designed to protect individuals, professionals, and businesses against legal claims arising from accidental injury, property damage, or professional negligence. It covers legal fees, settlements, and compensation payouts, providing financial protection in case you’re held responsible for harm caused to others.
Whether you're a doctor, business owner, manufacturer, or service provider, liability insurance helps you avoid large out-of-pocket legal costs and reputational damage.
Key Benefits
- Covers third-party legal liability for injury, damage, or negligence
- Protects personal and business assets from lawsuits
- Supports compliance and enhances client trust
- Suitable for professionals, shop owners, and businesses of all sizes
- Customizable coverage based on risk and industry.
What’s Not Covered
- Deliberate or criminal actions
- Breach of contract or known liabilities
- Penalties or fines imposed by law
- Damages due to pollution or cyber risk (unless add-ons are chosen)
Types of Liability Insurance – Part 1
1. Professional Indemnity Insurance
Meant for professionals like doctors, lawyers, architects, consultants, and engineers. It covers claims of professional negligence, errors, or omissions that cause financial or reputational loss to a client or third party.
2. Public Liability Insurance
Ideal for businesses that interact with the public (shops, showrooms, offices, restaurants). It covers legal claims arising from injuries or property damage suffered by third parties on your premises.
Types of Liability Insurance – Part 2
3. Product Liability Insurance
Designed for manufacturers, traders, and distributors. It covers legal claims arising due to defective products that cause harm, injury, or damage to consumers or property.
4. Employer’s Liability Insurance
Protects businesses if an employee sues for workplace-related injuries or illnesses. This is especially important in industries with physical work or factory settings.
5. Commercial General Liability (CGL) Insurance
A comprehensive policy that combines public liability, product liability, and personal injury cover. Ideal for medium to large enterprises, CGL provides broad protection from a range of legal risks.
Tinassure Insight
Even small incidents can lead to major lawsuits. Liability Insurance protects your peace of mind, your finances, and your professional reputation. At Tinassure, we simplify the complex and guide you in choosing the most relevant policy for your line of work.
📞 Confused between CGL and Professional Indemnity?
Reach out to Tinassure — we’re here to help you understand and insure wisely.
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FAQS
Liability Insurance protects individuals or businesses from legal and financial claims arising from accidental injury, property damage, or professional errors caused to third parties. It covers legal defense costs, settlements, and compensation payouts.
Public Liability Insurance covers third-party injuries or property damage that occur on your premises.
Professional Indemnity Insurance covers claims arising from professional errors, negligence, or advice that causes loss to a client.
In India, Liability Insurance is not mandatory in most cases, but is strongly recommended for professionals and businesses to safeguard against unforeseen legal risks. In some sectors (like pharma or large infrastructure), certain liability covers may be contractually required.
Anyone offering a service, product, or running a business should consider it, including:
Doctors, lawyers, and consultants
Shopkeepers, salon owners, and office managers
Manufacturers and distributors
Contractors and builders
Any business dealing with customers or clients
Common exclusions include:
Intentional or fraudulent acts
Fines or penalties by law
Known claims or disputes before policy purchase
Pollution or cyber liability (unless covered via add-ons)
Yes, liability insurance is highly flexible. You can choose add-ons or tailor the coverage amount based on the size, nature, and risk profile of your business or profession.