Public Liability Insurance in the UAE and it’s Importance

Public Liability Insurance covers against claims by third parties that may have suffered physical injury or damage to property as a result of your business, premises or a product or service you may have supplied.

An unforeseen legal liability can have severe financial consequences for your business. Public liability insurance will protect you against unforeseen accidental incidents, such as if a customer slips and falls at your premises,  or is otherwise injured during the course of your business activities. 

Tortious Liability: A tort is a civil wrong that leads to a claimant suffering loss or harm resulting in legal liability by a person or business. This can be by an act or an omission, whether intentional or not. In the UAE, the tortious liability falls under a civil code that safeguards personal security and property, thereby obligating reparations for any civil wrongs done.

How Do You Know if Your Business Needs Public Liability Insurance?

  • You own or rent a building, warehouse or office
  • Your business involves work in the public area or visits to clients premises.
  • Your business manufactures or distributes any products

Public Liability Insurance is essential if members of the public will be interacting with your company in any way, as this leaves your business open to exposure to third-party claims. In this instance, it’s advisable to have public liability insurance in place, and you may be required to provide proof of cover to potential clients. 

How Does the Cover Work?

A public liability Insurance policy includes cover against claims by third parties up to a specified limit, and includes the cost of legal defence and damages. The cover is usually offered on an ‘occurrence’ basis, meaning that if the event occurs within the period of insurance, the policy will cover it even if the claim is made after the policy expires.

What Types of Claims are Covered? 

Public Liability Insurance covers the insured in the event of claims for damages by third parties, including costs, fees and expenses as well as legal costs. 

Certain types of claims are specifically excluded, such as liabilities arising out of:

  • Owned or rented motor vehicles, aircraft or watercraft
  • Property owned by the insured
  • Use of a product (product cover can be added on)
  • Liabilities towards employees of the insured
  • Pollution or contamination unless unforeseen and accidental

What is Premises Liability and Work Away Liability?

There are two kinds of Public Liability Insurance offered in the UAE:

  • Premises risks only – cover is provided in respect of claims arising out of incidents at your business premises only.
  • Work away – this type of cover will insure against any third party claims arising out of your business activities, including damage to a clients property or damage or injury while conducting business in a public area.

Product Liability

This cover insures against damages as a result of defective design, manufacture or warnings under UAE laws, as consumers can file a claim against your business under the UAE’s Consumer Protection Laws. Even if you aren’t the manufacturer of the product, UAE consumer laws hold all distributors, suppliers and agents liable for the products they distribute.

Product Liability Insurance will cover you against claims for damages to property or bodily injury to third parties, as a result of the use of products you have sold or manufactured. This includes legal defence costs, and claimant’s expenses and costs.

We understand that the process of selecting the right Public Liability Insurance benefits that fit the needs of  your business can be complicated

Download our free eBook The Ultimate Guide to Public Liability Insurance in the UAE to get all the facts on this important coverage for your business.

About Author

Rachel Al Mughairi

About Author

With over 34 years in the international insurance industry in a variety of senior management roles, and as holder of the Diploma in Insurance from the Chartered Insurance Institute, Rachel surely knows her insurance! With experience in London, continental Europe and the Middle East, Rachel is here to share her knowledge and help you understand more about insurance products in this easy-to-understand series of videos and blogs.