Indian tech and EdTech companies face multiple risk categories. No single policy addresses all exposures. Under IRDAI-regulated products, companies typically consider a combination of covers.

Here is a simplified regulatory-aligned overview.

1) Professional Indemnity (E&O) – Client Dispute Risk

Relevant for:

• Software development
• Implementation services
• Advisory work
• Managed services

Protects against allegations of professional negligence leading to financial loss.

Typically claims-made.

Key variables:

• Retroactive date
• Indemnity limit
• Deductible
• Territorial jurisdiction
• Exclusions

2) Cyber Insurance – Data Breach & Digital Attack Risk

Relevant for:

• Ransomware
• Data breaches
• System compromise
• Business interruption from cyber events

May include:

• Incident response support
• Forensic investigation
• Legal costs
• Notification expenses

Coverage varies widely by insurer wording.

3) Directors & Officers (D&O) Insurance – Governance Risk

D&O protects directors and officers when personally named in claims alleging:

• Breach of duty
• Mismanagement
• Regulatory non-compliance
• Shareholder disputes

Indian D&O policies are also typically claims-made.

Important:

• Coverage may include defence costs.
• Statutory fines and penalties may not be insurable under Indian law.
• Policy wording determines Side A, Side B, and Side C structure.

This is particularly relevant for venture-funded startups or companies with independent directors.

4) Group Health Insurance – Employee Benefit Risk

Group health insurance is a common employee benefit in the Indian tech ecosystem.

Provides:

• Hospitalisation cover
• Optional dependent coverage
• Cashless access through network hospitals

Often viewed as a baseline expectation in hiring.

How Ops / Legal / Finance Teams Should Think About This

If your concern is:

“Client claims we caused financial loss” → Professional Indemnity.

“Data breach or ransomware incident” → Cyber insurance.

“Directors personally named in a claim” → D&O insurance.

“Employee healthcare benefits” → Group health.

Insurance is a support mechanism. It does not replace compliance with the DPDP Act, contract governance, cybersecurity controls, or HR processes.