Trusted Advice. Tailored Solutions. Lasting Protection.

Liability Insurance

Comprehensive protection against legal liabilities arising from business operations, management decisions, cyber incidents, and professional services. Our liability insurance solutions provide extensive coverage to protect your organization, its leadership, and employees from financial and reputational risks arising from legal claims, lawsuits, and regulatory actions.

1. Directors & Officers (D&O) Liability Insurance

Protects directors, officers, and senior management from personal liability for wrongful acts, errors, omissions, or breach of duty committed while managing the company. Covers legal defense costs, settlements, and judgments arising from shareholder lawsuits, regulatory investigations, and stakeholder claims.

Who Can Take Action Against D&O:

Shareholders and investors, Regulatory bodies (SEBI, ROC, RBI, IRDA), Employees and former employees, Creditors and lenders, Customers and clients, Competitors, Government agencies

Key Exclusions:

Intentional fraud and criminal acts, Personal profit or illegal remuneration, Prior known claims or circumstances, Bodily injury or property damage, Fines and penalties (in some jurisdictions)

Why It's Essential

SEBI LODR makes D&O mandatory for independent directors of listed companies. Protects personal assets of directors from legal claims. Allows leaders to make bold decisions without fear of personal liability. Covers investigation and defense costs even if claim is baseless. Critical for startups attracting investors and board members.

Premium Factors:

Company size, industry, listing status, claims history, governance practices, coverage limits

  • Executive and Non-Executive Directors
  • Managing Directors and CEOs
  • Independent Directors
  • Officers and Senior Management
  • Company Secretaries
  • Trustees and Committee Members
  • Former, Present, and Future Directors/Officers
  • Estates and Legal Representatives
  • Spouses (under spousal liability extension

  • Wrongful acts, errors, omissions, misstatements, misleading statements, breach of duty
  • Shareholder derivative lawsuits and class actions
  • Breach of fiduciary duty allegations
  • Regulatory investigations and enforcement actions (SEBI, RBI, ROC, Income Tax, GST authorities)
  • Employment practice violations (discrimination, wrongful termination, sexual harassment)
  • Mismanagement and corporate governance failures
  • Accounting irregularities and financial reporting errors
  • Mergers and acquisitions related claims
  • Securities claims (for listed companies – Side C coverage)
  • Legal defense costs (paid in advance of judgment)
  • Settlement amounts and judgments
  • Investigation costs and inquiry expenses
  • Crisis management and reputation protection expenses

2. Cyber Liability Insurance

Comprehensive coverage for data breaches, cyber attacks, ransomware, hacking incidents, privacy violations, and network security failures. Protects against financial losses, legal liabilities, notification costs, business interruption, and reputational damage arising from cyber incidents.

Common Cyber Incidents Covered:

Phishing and social engineering attacks, Ransomware and malware infections, Business email compromise (BEC/CEO fraud), Distributed denial-of-service (DDoS) attacks, Insider threats and employee data theft, Cloud service provider failures, Third-party vendor breaches affecting your data, Accidental data disclosure or loss

Who Should Purchase:

E-commerce and online businesses, Healthcare providers (handling patient data), Financial services and FinTech companies, IT/Software companies and SaaS providers, Professional services firms (CA, lawyers, consultants), Retailers handling payment card data, Any business storing customer PII/sensitive data

Why It's Essential

Average data breach cost in India: ₹17-20 crores. DPDP Act 2023 imposes heavy penalties up to ₹250 crores. Cyber attacks increased 78% in recent years. Reputational damage can be catastrophic. Standard property/liability policies exclude cyber risks.

Key Exclusions:

Pre-existing breaches or known vulnerabilities, Infrastructure upgrades and improvements (betterment), Loss of intellectual property value, War and terrorism (unless covered by endorsement)

Premium Factors:

Annual revenue, data volume, industry sector, security measures, prior breach history

  • Data Breach Response Costs: Forensic investigation, IT specialists, malware removal, system restoration
  • Notification Expenses: Legal requirement to notify affected customers, employees, regulators
    Credit Monitoring Services: Providing credit monitoring for affected individuals (typically 1-2 years)
  • Public Relations & Crisis Management: Reputation repair, media management, customer communication
  • Business Interruption Loss: Lost income and continuing expenses during network downtime
  • Cyber Extortion & Ransomware:
    Negotiation costs, ransom payments (subject to policy terms and legal compliance)
  • Data Restoration & Digital Asset Recovery:
    Costs to recreate, restore, or recover lost/corrupted data
  • Legal Counsel Fees: Specialized cyber legal advisory
    Regulatory Fines & Penalties: DPDP Act penalties, PCI-DSS fines (where insurable)

  • Privacy Liability: Claims from customers/third parties for failure to protect personal information (PII/PHI)
  • Network Security Liability: Transmission of malware/viruses to third parties, denial-of-service attacks affecting clients
  • Media Liability: Defamation, copyright infringement, plagiarism in digital content
  • Regulatory Defense Costs: Legal defense for regulatory investigations and proceedings
  • PCI-DSS Penalties: Payment Card Industry fines for card data breaches

3. Product Liability Insurance

Protection against legal liability arising from defective or faulty products causing bodily injury, property damage, or financial loss to consumers or third parties. Covers manufacturers, distributors, importers, and retailers.

Who Should Purchase:

Manufacturers of consumer goods, Food and beverage producers, Pharmaceutical and healthcare product companies, Automotive parts manufacturers, Electronic equipment manufacturers, Toy and children’s product makers, Importers and distributors of foreign products, Retailers and wholesalers, E-commerce platforms selling products

Typical Claims Examples:

Contaminated food products causing illness, Faulty electrical appliances causing fire or injury, Defective automobile parts causing accidents, Cosmetics causing allergic reactions, Toys with choking hazards, Pharmaceutical side effects due to manufacturing defects

Why It's Essential

Consumer protection laws favor consumers. Product liability claims can be catastrophic. Legal defense costs alone can be substantial. Protects business continuity and brand reputation.

Key Exclusions:

Known defects not rectified, Product recalls (unless specifically covered), Intentional non-compliance with standards, Asbestos and pollution-related claims, Pure financial losses without bodily injury/property damage

Coverage Territory:

Usually India, but can be extended worldwide for exports

  • Bodily injury caused by defective products (poisoning, allergic reactions, physical harm)
  • Property damage from product failure or malfunction
  • Design defects and manufacturing defects
  • Inadequate warnings or instructions (failure to warn)
  • Labeling errors and misrepresentation
  • Legal defense costs and attorney fees
  • Settlement amounts and court judgments
  • Product recall expenses (if covered by endorsement)
  • Investigation costs
  • Court costs and legal proceedings expenses

Trusted Advice. Tailored Solutions. Lasting Protection.

what people are saying

Hear what our valued clients have to say about their experience with BP Risk.

Quotes Dark

BP Risk Advisors helped us consolidate our entire insurance portfolio and saved us significant costs. Their 20 years of experience shows in their professional approach.

Rajesh Kumar – Corporate Client

Quotes Dark

Their expertise in marine insurance is outstanding. Been with them for 15 years and never disappointed.

Anil Mehta – Corporate Client – Mumbai