Liability insurance policy offers protection to individuals and businesses from legal payouts that the policyholder is liable to pay or is sued for. However, claims filed for intentional damages, criminal prosecution, and contractual liabilities are not covered in a Liability insurance policy.

Liability insurance is a type of insurance policy that safeguards individuals and/or businesses against risks that they may be held legally liable. Simply put, if the policyholder is liable for any third-party loss or damage then the insurer will recompense the damage incurred. Generally, the coverage is provided for both legal and financial liabilities until it is intentional.

Types of Liability Insurance in India
There are different types of policies that are available in India catering to the different needs and requirements and the line of work of the customers. Some of the most common liability cover policies are:

Public Liability Cover
This type of policy is designed for those industries/companies that have a lot of interaction with the general public. It is suggested to buy this insurance policy to secure you from unnecessary financial risks and legal liabilities. Retail shops, shopping malls, clubs, theatres, and all those catering to the general public are advised to take this variant of liability policy.

Professional Indemnity Insurance
It is a type of liability policy that is designed for professionals such as medical practitioners, architects, engineers, lawyers, chartered accountants, and services that need to protect their business interests against legal claims for professional neglect, error, or omissions.

Employer Liability
This policy is for employers who want to cover the liabilities of employees who may get injured because of the job. Generally, this insurance policy is known as Business Liability Insurance.

Product Liability
This policy is one of the most required policies for companies that are related to the production of tobacco, chemical industry, food, medical products, recreational products, etc.

Third-Party Liability
This policy is suitable for small industries or individuals who want coverage for damages or losses caused by them to a third party. In third-party insurance, the insured is the first party, the insurance provider is the second party, and the injured or the company/person who is making claim against the insured is referred to as a third-party.