Commercial Insurance

Liability Insurance for Businesses

D&O, professional indemnity, cyber and general liability cover for claims against your business and its leaders.

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CoversD&O, PI, cyber, CGL

Covers: D&O, PI, cyber, CGL
Policy basis: Mostly claims-made*
Defence costs: Within limit, per wording
Limit of indemnity: Chosen to match exposure

What is liability insurance?

Most business insurance protects things you own: buildings, stock, machinery. Liability insurance protects you against what others claim you owe them. A customer injured at your showroom, a client alleging a costly mistake in your report, a shareholder suing directors over a decision, or a data breach exposing customer records can each lead to legal costs and compensation far larger than the original problem.

Liability policies pay defence costs and settlements or awards, up to the limit of indemnity, subject to the policy terms.

The main covers at a glance

Cover	Protects	Typical trigger
D&O	Directors and officers personally	Claims by shareholders, regulators, lenders or employees over management decisions
Professional Indemnity	Firms and professionals	Alleged negligence, error or omission in services
Cyber	The business and affected third parties	Data breach, ransomware, system outage
CGL	The business	Third-party injury or property damage from premises, operations or products

Why this matters more for Indian businesses now

Several changes have moved liability cover from optional towards essential:

Board accountability. The Companies Act, 2013 and SEBI's listing rules set out clear duties for directors, including independent directors, and regulators investigate more actively than before.
Data protection. The Digital Personal Data Protection Act, 2023 and its rules place firm obligations on any business that handles personal data.
Consumer protection. The Consumer Protection Act, 2019 made it easier to bring claims, including product liability claims.
Contract requirements. Large clients, especially multinationals and government bodies, increasingly ask vendors for proof of PI or CGL cover before awarding work.

Things to compare before you choose

Liability policies differ far more in wording than property policies, so two quotes with the same limit can respond very differently to the same claim.

Who is insured. Does the D&O policy cover past directors and employees named in a suit?
Retroactive date and continuity. Is work done before the policy started covered?
Exclusions. Prior and pending litigation, contractual liability, fines and penalties (often covered only where insurable by law), and war or infrastructure failure in cyber.
Sub-limits. Watch the caps on regulatory investigations, ransomware and social engineering fraud.
Territory and jurisdiction. These matter if you have overseas clients or export to the US and Canada.
Claim handling. Check whether you can choose your lawyer and how defence costs are advanced.

Our team compares these points across insurers and keeps your cover continuous at renewal, which matters as much as the first purchase.

Who is it for?

Listed and unlisted companies with independent or professional directors
Consultants, CAs, architects, doctors, IT firms and other professionals
Businesses that hold customer data or depend on IT systems
Manufacturers, retailers, hotels and event organisers dealing with the public
Companies whose client contracts require proof of liability cover

Key features

Directors & Officers (D&O)

Covers the personal liability and defence costs of directors and officers for alleged wrongful acts in running the company, including regulatory investigations, subject to the wording.

Professional Indemnity (PI)

Protects professionals and firms against claims of negligence, errors or omissions in the services they provide, including legal defence costs.

Cyber risk

Pays for incident response, forensic investigation, data restoration, business interruption and third-party claims after a data breach or cyber attack, as per the policy.

Commercial General Liability (CGL)

Covers third-party bodily injury and property damage arising from your premises, operations or products.

Special risk extensions

Product recall, employment practices liability and crime or fidelity cover can be added or bought as separate policies.

How Ramasure helps

1
Map your exposures
Your relationship manager reviews your business activities, contracts, data handling and board structure to identify which liabilities matter most.
2
Choose limits and structure
We help you think through limits of indemnity, deductibles, retroactive dates and extensions in line with your contracts and appetite for risk.
3
Compare wordings across insurers
We obtain terms from multiple insurers and compare coverage, exclusions and sub-limits clause by clause, not just the premium.
4
Proposal and disclosures
We help you complete detailed proposal forms and questionnaires so that past claims and known circumstances are properly disclosed.
5
Renewal and claims support
We keep your cover continuous at renewal and help you notify claims or circumstances to the insurer on time.

Documents & eligibility

Documents you'll need

Completed proposal forms and, for cyber cover, the IT security questionnaire
Latest audited financial statements or annual report
Description of business activities, turnover split and geographies served
Details of past claims, legal notices or known circumstances
Copies of existing liability policies, if any
Client contracts or tender clauses that specify insurance requirements
Company KYC: PAN, GST certificate and incorporation documents

Costs and risks to understand

Costs to check

Premium depends on industry, turnover, limit of indemnity, deductible, claims history and risk controls
Deductibles or retentions are borne by you on each claim
Extensions such as worldwide jurisdiction or higher sub-limits add to the premium
GST is charged on the premium as per prevailing rules

Risks & things to know

Insurance is the subject matter of solicitation. Please read the policy wording carefully before buying.
*A claims-made policy that lapses can leave past work uncovered, so keep continuity and the retroactive date
Not disclosing known disputes or circumstances can lead to claim rejection
Fraud, deliberate wrongdoing, prior or pending litigation and contractual penalties are commonly excluded
Defence costs usually reduce the limit left for settlements or awards

Frequently asked questions

SEBI's listing rules require the top 1,000 listed companies by market capitalisation to take D&O cover for their independent directors. For other companies it is optional, though many buy it to attract experienced board members. Under the Companies Act, 2013, the premium is generally not treated as part of a director's remuneration unless the person is proved guilty.

A claims-made policy responds to claims first made against you during the policy period, for acts after the retroactive date. That is why renewing without a break, and keeping the same retroactive date, matters. Many CGL policies can instead be written on an occurrence basis.

Patients and clients can file negligence complaints before consumer commissions or courts, and defending even a weak case costs time and money. PI policies for doctors, CAs, architects, engineers and consultants pay defence costs and compensation within the limit, subject to exclusions.

Smaller firms are frequent targets of phishing, ransomware and payment fraud. A cyber policy can pay for forensic experts, data restoration, notification costs and third-party claims, depending on the cover chosen. Insurers will ask about basics such as backups and multi-factor authentication.

Public liability covers third-party injury or damage from your premises or operations, and the Public Liability Insurance Act, 1991 makes a specific policy compulsory for businesses handling hazardous substances. CGL is broader and typically bundles premises, operations and products liability in one policy.

Important information

Insurance is the subject matter of solicitation. For details on risk factors, benefits, exclusions and terms, read the sales brochure and policy wording carefully before concluding a sale.
Policies are underwritten and issued by the respective insurer. Ramasure does not underwrite risk, and claim settlement is at the insurer’s discretion as per policy terms.
In Unit Linked Insurance Plans (ULIPs), the investment risk in the investment portfolio is borne by the policyholder. Linked insurance products do not offer any liquidity during the first five years of the contract.
Waiting periods, sub-limits and co-payments may apply to health insurance. A free-look period is available on eligible policies, as per the policy terms.
Tax benefits, if any, are subject to the provisions of tax laws as amended from time to time.

Read all disclosures

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