The 60-second version
Public liability covers bodily injury or property damage to third parties on your premises — mandatory for many trade licences. I buy ₹10L–1Cr cover with products liability add-on for F&B.
Trade licence often requires PL policy before inspection
Returning founders opening café, clinic, or coaching centre need public liability — covers customer slip-and-fall or equipment injury on premises.
Products liability add-on needed if you manufacture or serve food — distinct from PL premises cover.
Premium is business expense under Section 37 if revenue-linked — not 80D health deduction.
Licence stack: trade licence guide.
Liability cover matrix
| Cover | Trigger | Typical SI |
|---|---|---|
| Public liability | Third-party injury on premises | ₹10L–1Cr |
| Products liability | Defective product harm | ₹25L–5Cr |
| Professional indemnity | Advice negligence | Separate policy |
| Employee compensation | Staff injury | WC policy |
| D&O | Director wrongful acts | See D&O guide |
Public liability sequence
Risk survey
Footfall, kitchen, machinery hazards.
Pick SI
Trade licence minimum + landlord ask.
Add products
F&B or retail needs products extension.
Name insured
Match trade licence entity name.
Renew annual
Attach to licence renewal file.
Claim flow
PL policy kit
- Trade licence copy.
- Rent agreement.
- Policy schedule.
- Claim intimation number.
- Premium receipt.
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Landlord ask
Mall and co-working leases often mandate ₹50L+ PL — check lease clause.
Quick visual
Animated decision map
Community signal
What to watch in real discussions
Search community threads for the exact phrase, then treat repeated complaints as risk signals rather than official advice.
Open nofollow community search ->Interactive checkpoint
Turn this guide into a decision file
0 of 4 checked
Home tuition?
Residential PL usually excluded — commercial policy needed.
Event one-day?
Event liability short-term policy available.
GST on premium?
18% GST — ITC if business registered.
NRI owner abroad?
POA holder can handle claim with policy copy.
Sub-contractors?
Ensure their WC — your PL may exclude subcontractor acts.
Vs burglary rider?
Different peril — both needed for shop.
The plan is only as good as the sequence.
Tax, banking, schools, shipping — they all have dependencies. A wrong order costs months and lakhs. Get it right.