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Public Liability Insurance

Public Liability Insurance

What is Public Liability Insurance?

Public Liability Insurance safeguards your business against unexpected third-party liabilities, such as injuries or property damage. These liabilities, often governed by legal obligations, can pose a significant risk to the future of your business. This type of liability insurance policy ensures that you are financially prepared to manage such claims, minimising the financial strain on your operations. Commonly referred to as Third-Party Liability Insurance, this coverage is essential for businesses exposed to public interactions, offering peace of mind and uninterrupted growth.

What is Public Liability Insurance?

Features of Public Liability Insurance Policy

Public Liability Insurance is a helpful protection for individuals and businesses that frequently

interact with the Third Party. Here are its key features:

  • 1

    Coverage Options

    Choose from Public Liability Act, Industrial Or Non-industrial Public Liability Insurance, designed to suit your specific business or work requirements. Where Public Liability Insurance Act policy is a statutory policy for businesses involved in handling of hazardous substances as per the Act, Public Liability Industrial and Non-industrial policies are suited for coverage for Legal liability arising from Third party according to their respective occupancies.

  • 2

    Legal Liability Coverage

    Protects against costs and expenses you are legally required to pay as well as damages to third parties for accidental death, bodily injuries, illnesses, and damage to property.

  • 3

    Hassle-Free Claims

    Features a simple, efficient, and user-friendly claim process to ensure minimal disruption to your operations.

With these features, Public Liability Insurance ensures peace of mind and financial
security for businesses of all types

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Types of Public Liability Insurance in India

Types of Public Liability Insurance
in India

  • 1

    Public Liability Act Policy (1991)

    Who needs it: This policy is a statutory requirement for businesses handling hazardous materials as per the Public Liability Insurance Act of 1991.


    Coverage: It ensures compensation for victims of accidents involving hazardous substances. The focus is on protecting public from accidental casualties, while also covering legal liabilities of the company.

  • 2

    Public Liability Industrial Policy

    Who needs it: Designed for manufacturing companies, this policy covers risks associated with industrial operations.


    Coverage: It provides protection against claims from third parties who may suffer bodily injury or property damage due to industrial operations.

  • 3

    Public Liability Non-Industrial Policy

    Who needs it: Suitable for businesses in non-manufacturing sectors, such as offices, retail outlets, or service industries.


    Coverage: It provides protection from third-party claims arising from bodily injury incidents like slip-and-fall accidents, damages caused by employees, or property damage on business premises.

What’s Covered in Public Liability Insurance?

Lawsuits, investigations, and settlements in Public Liability Insurance

Lawsuits, Investigations, and Settlements:

If your business is sued for damages caused to a third party, the policy covers legal expenses, including fees for investigating officers or lawyers.

Accidental damages and injuries under Public Liability Insurance

Accidental Damages and Injuries:

Any accidental damage or injury caused by your products, operations, or premises, resulting in a third-party liability claim, will be covered.

Property damage liability under Public Liability Insurance

Property Damage Liability:

Covers liabilities arising from damages to a third party’s property due to Insured’s business operations.

What is not covered in Public Liability Insurance

What’s Not Covered?

  • Own Property Damage: Damages to your business’s own property, such as a fire outbreak at your office, are not covered. The policy only addresses third-party liability claims.
  • War-Related Damages: Any loss or damage caused by war, war-like situations, or military actions is excluded from coverage.
  • Radiation-Related Damages: Any damage caused by ionising radiation or radioactive contamination is not covered.
  • Fines and Penalties: The policy does not cover claims for fines, punitive damages, penalties, or exemplary damages.
  • Others: Any wilful or intentional non-compliance of any statutory requirements for any claim arising outside the territorial limits of India.
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How to Raise a Claim Under Public Liability Insurance?

Here are the steps for a smooth claim experience:

  • Notify the Insurer Immediately: As soon as a liability arises, inform your insurer to initiate the claim process.
  • Keep Documents Ready: Gather all relevant documents, such as proof of liability, incident details, and supporting records, to facilitate a smooth process.
  • Provide Correct Information: Ensure you share precise and truthful information with the insurer and any appointed investigator.
  • Survey and Investigation: Once the claim is registered, the insurer will appoint a surveyor to investigate the claim and assess the damages.
  • Court Determination of Liability: In liability cases, the court determines the extent of liability and the amount to be compensated.
  • Submit Supporting Documents: Ensure all necessary documents, as requested by the insurer, are submitted to avoid delays in the settlement process.
  • Settlement by the Insurer: After the court's judgment, the insurer will process and settle the claim amount as decided by the court.

Liability claims differ from other claims as they often involve legal proceedings and court judgments. Timely action and proper documentation are important for a successful claim settlement.

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How to raise a claim under Public Liability Insurance

ICICI Public Liability Insurance Articles

Why Public Liability Insurance Act 1991 matters for Indian businesses

The Public Liability Insurance Act 1991 ensures quick compensation for victims of accidents involving hazardous substances. This blog explains why the Act is essential for Indian businesses dealing with chemicals, pesticides, or other dangerous materials. It outlines the mandatory insurance requirement, powers granted to authorities, penalties for non-compliance, and the role of the Environmental Relief Fund. Learn how this Act supports public safety, encourages risk mitigation, and provides financial protection for businesses through compulsory liability insurance. Whether you're a plant operator or a warehouse manager, this guide will help you understand your legal duties and insurance obligations.

15 Apr 2025
Why Public liability insurance matters for LPG customers in India

Public liability insurance provides crucial protection for LPG customers in India against third-party claims resulting from gas accidents. This blog explains its coverage, exclusions, and why it matters.

17 Apr 2025
How Directors and Officers liability insurance shields your business from cyber threats

Cyberattacks are a growing threat that can disrupt operations, drain finances and tarnish your brand. In today’s digital landscape, even a single breach can lead to data loss, legal complications and operational downtime. To safeguard your business, it’s vital to invest in strong cybersecurity measures and have robust insurance in place. Directors and Officers liability insurance (D&O insurance) plays a key role in protecting your company’s leadership from personal financial losses if they’re held liable for inadequate cyber risk management.

01 Mar 2025

Frequently asked questions - Public liability

1. Does this policy cover damages to my own business?

This policy covers third-party liabilities and does not include compensation for damages to your own Property damage.

2. Is Public Liability Insurance mandatory?

Public liability Insurance Act is a mandatory policy for companies handling hazardous substances, while Public Liability Insurance is not mandatory, having it is a smart choice. This policy offers essential protection against third-party liabilities, ensuring peace of mind for your business.

3. What factors influence the cost of Public Liability Insurance?

The factors that influence the premium for Public Liability Insurance include:


  • Business of the Insured.
  • Occupancy of the premises.
  • Number of location to be covered.
Product Product Code UIN (Commercial) UIN (Retail)
Public Liability Insurance (Under Public Liability Insurance Act, 1991) 4007 IRDAN115CP0014V01201920 IRDAN115RP0005V01200102
Public Liability Insurance (Industrial Risks) 4008 IRDAN115CP0015V01201920 IRDAN115RP0006V01200102
Public Liability Insurance (Non-Industrial Risks) 4009 IRDAN115CP0016V01201920 IRDAN115RP0007V01200102

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