Liability only policy is an insurance that covers the damages or injuries that you might accidentally cause to other people or their property while running your business. It’s common to call it “third-party” insurance as well.
For many business owners, here are certain scenarios when you might or might not need it:
Understanding what isn't covered is as important as knowing what is. Before finalizing your liability only policy, always check for common exclusions.
Coverage Status | Description | Example |
Covered | Injury to a third party | For instance, your medical bills for a pedestrian injured in an accident involving your company car. |
Covered | Damage to third-party property | Repair costs for another vehicle you hit. |
Excluded | Damage to your own vehicle/property | You are responsible for repairs to your own company car after an at-fault accident. |
Excluded | Personal injury to the owner-driver | Your own medical expenses are not covered without a personal accident add-on. |
Excluded | Non-accidental damages | Wear and tear, mechanical failures, or damage from driving under the influence. |
For a liability only policy in India, the price is set by the Insurance Regulatory and Development Authority of India (IRDAI). That means you get no surprises or hidden fees.
What really matters for your premium is the engine size of your vehicle. Since this insurance is all about covering others (and not taking care of your own vehicle repairs), the costs are much lower than those big, all-in-one comprehensive plans. That’s why so many businesses, especially the new ones, choose liability only first. It gives you the required protection without adding a heavy financial load.
Most of the time, you can upgrade your liability only policy to full comprehensive coverage right at your policy renewal. No complicated steps required.
If you’re not sure about it, contact insurance experts, they can walk you through the pros and cons, and show you exactly how costs and benefits go, and help you understand the right terms and clauses of the policy that aligns with the requirements of your business.
To get a liability only policy online all you need are these documents:
Once you’ve got these handy, fill in the details, grab your quote, and your liability only policy would’ve been locked for you.
Let our team at Edify Brokers help you find the perfect insurance fit.
