Companies are facing a shifting risk landscape brought about by structural changes in the economy, changes in the legal environment, and the emergence of new risk classes due to new technologies, globalization, deregulation, and geopolitical changes. Such a dynamic landscape is witnessing the emergence of newer business Risks and the metamorphosis of older ones. To compound, other factors such as changing and emerging regulations, the expansion of global footprints of Indian companies, increasing general public awareness, and high litigation costs have made entities vulnerable to a variety of liability risks.

In essence, Companies are exposed to a variety of legal actions right from a customer to an employee. Such claims are typically high in magnitude thereby impacting the cashflows and disturbing the normal functioning of the company’s business.

Liability insurance provides an effective risk transfer tool to protect  business entities and/or their Employees & Officers against the risk that they may be sued and held legally liable for their acts or omission. Unlike various Asset Insurance which are first part covers to indemnify the Insured for loss or damage to insured’s own and/or controlled property, a liability insurance is a third party loss cover that indemnifies the insured against third party claims.

Liability Insurance not only protect  any business in the event of any claims for loss suffered, but is often required for business contracts which stipulates purchase of liability insurance. Certain Liability insurance are also required to be purchased compulsorily by the law of the land.