Public Liability

Two types of Public Liability Insurance are typically sold in the UAE.

Cover for premises risks only

Cover is provided only in respect of any third-party claims arising out of your premises. This could be a visitor slipping on a wet floor in your office or a Fire starting at your office and spreading to a neighbour.

Cover for all business activities [ Including work Away ]

Cover is provided in respect of any third-party claims arising out of your business activities. This could be from damage to a client’s property while you carry out some work there or injury to public while carrying out your business in a public area. A public liability insurance will protect your business in the event a third-party person is injured, or their property is damaged because of your business activities or on your business premises.

Public Liability insurance becomes a must for businesses which involve:

Leasing or owning a premise
Frequent visits by customers and guests
Carrying out work at client’s premises
Regular interaction with the public

Typical scope of public liability insurance

Accidental death of third parties due to negligence
Bodily injury of third parties due to negligence
Loss or damage to property of third party due to negligence
Legal costs and expenses

Do i need public liability Insurance ?

Do you own or rent a property such as a building, warehouse, or an office?
Does your business involve work in public areas or visits to a client’s premises?
Does your business involve manufacture or distribution of any products?

If your answer is yes to any of the above, you have some level of exposure towards third parties, and it is highly recommended to have a public liability insurance to cover these risks. You may additionally be required by contract to provide proof of such an insurance cover to your clients.

How does the cover work ?

Public liability insurance offers cover against claims from third parties and clients for negligent damage to their property or bodily injury up to the limit specified in the policy. The limits would include costs of legal defence and damages awarded by a court.
Limits can be offered from as low as AED 500,000 up to AED 100m any one occurrence. Obviously, the limits required may depend on a requirement from a free zone or as contractually required for a project.
Insurers maintain the right to defend claims and insured are not allowed to offer any remedy or accept liability without written consent of the insurers.
Cover is usually offered on an “occurrence basis”. This means that if a covered event has “occurred” within the period of insurance, the policy will respond. So, it does not matter if the claim was made after the policy expired.

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