Liability Insurance in the UAE: A Guide for Businesses
Public, products and employer's liability explained: what each covers, what contracts ask for, and how to choose your limit.
✓ Since 1995 · ✓ Central Bank of the UAE Reg. No. 081 · ✓ Compared across leading UAE insurers
If your business injures someone or damages their property, you can be held liable to compensate them, and legal costs alone can be high. Liability insurance pays these claims and the cost of defending them. This guide explains the main types for UAE businesses and what landlords, clients and contracts usually ask for. It's written by Al Berwaz Insurance Brokers, licensed by the Central Bank of the UAE (Registration No. 081).
The main types of liability cover
- Public liability (third-party liability): injury to people or damage to their property caused by your business activities or premises, for example a visitor slipping in your showroom.
- Products liability: injury or damage caused by products you make, import, sell or supply, after they've left your hands.
- Employer's liability: claims by your own employees for work injuries beyond what the labour law requires. It usually sits alongside workmen's compensation.
- Professional indemnity: claims that your advice, design or professional service caused a client financial loss.
Why contracts ask for it
Many UAE landlords, mall operators, main contractors and government entities make public liability insurance a condition of a lease, tender or contract. They often set a minimum limit and ask to be named on the policy as an additional insured or principal. Check these clauses before you sign, because your insurer has to agree to them.
Choosing your limit of indemnity
The limit is the most the policy pays, usually per occurrence or in total for the year. Choose a limit that meets your contracts and reflects the worst realistic claim your business could face, such as a serious injury on your premises or a product fault affecting many customers. Higher limits cost more, but not in direct proportion.
What isn't usually covered
- Damage to property you own or are working on, which belongs under property or contractors' policies
- Liability you accept under a contract beyond what the law would impose
- Professional advice or design errors, which need professional indemnity
- Gradual pollution, unless specifically added
- Product recall costs, which need separate cover
- Vehicle accidents, which are covered by motor insurance
How premiums are calculated
Insurers look at your activity, annual turnover or wage roll, number of staff, premises and visitors, the products you sell and where you sell them, the limit you choose, and your claims history.
What to prepare for a quote
- Activity: a clear description of what your business does.
- Turnover: annual turnover, split by activity or product where relevant.
- Premises: locations, size, and roughly how many visitors you receive.
- Contracts: any clauses that set required limits or named parties.
- Claims: incidents and claims over the last three to five years.
Why use a broker?
Liability wordings vary widely between insurers, especially on exclusions and contract requirements. A broker checks the insurance clauses in your contracts, compares insurers, and supports you when a claim is made against you. Broker commission is built into the insurer's premium, so using a broker doesn't add to your cost.
Related:Liability insurance · Workmen's compensation guide · D&O and professional indemnity guide · All guides
Got questions? We've got answers
Quick answers to other questions businesses ask us about liability insurance.
Ask Us a QuestionIs public liability insurance mandatory in the UAE?
There is no single law requiring every business to buy it, but many landlords, clients and contracts require it, and some permits, such as for events, may ask for it.
Does public liability cover injuries to my employees?
No. Employee injuries are covered by workmen's compensation and employer's liability insurance. Public liability covers third parties such as visitors, customers and the public.
What does "per occurrence" mean?
The limit applies to each incident separately. Some policies also have an aggregate limit, which is the most the insurer pays for all claims in the policy year. Products liability is often written on an aggregate basis.
Are legal costs covered?
Usually, yes. Policies normally pay reasonable defence costs agreed by the insurer, either on top of the limit or within it, depending on the wording. Check which applies to your policy.
✓ Serving Abu Dhabi businesses since 1995
✓ Licensed by the Central Bank of the UAE (Reg. No. 081)
✓ Liability cover compared across leading UAE insurers
This guide is general information, not legal or financial advice. Terms differ between insurers. Cover is subject to the policy terms, conditions and exclusions of the issuing insurer.