Public and Product Liability Insurance in the UAE

Public and Product Liability Insurance helps protect businesses against eligible legal liabilities arising from accidental third-party bodily injury or property damage. Coverage may apply to incidents connected with the insured business operations, premises or products.

The policy does not cover every complaint or business loss. Each claim is assessed according to the insured activities, policy period, territorial limits, liability limits, deductibles, conditions and exclusions stated in the issued policy.

What Is Public Liability Insurance?

Public Liability Insurance may respond when a customer, visitor, contractor or other third party alleges that the insured business caused accidental bodily injury or property damage.

Examples may include:

1. Visitor Injuries: A customer or visitor is injured in an accident at the insured business premises.
2. Damage at a Customer’s Location: An employee accidentally damages third-party property while carrying out insured work.
3. Events and Exhibitions: A third party suffers injury or property damage during an insured event, exhibition or business activity.
4. Contracting Operations: Insured work at a project site causes accidental injury or damage to another person’s property.

What Is Product Liability Insurance?

Product Liability Insurance may cover eligible claims arising from products manufactured, assembled, sold, supplied, installed, serviced, treated, repaired or distributed by the insured business.

Examples may include allegations that:

1. A Defective Product Caused Injury: A consumer suffers bodily injury after using an insured product.
2. A Product Damaged Other Property: An insured product causes accidental damage to property belonging to a customer or another third party.
3. Instructions or Warnings Were Inadequate: A claim alleges that the product did not contain suitable usage instructions or safety warnings.
4. Installation or Repair Was Defective: Work performed on a supplied product results in eligible third-party injury or property damage.

What May the Policy Cover?

Depending on the issued policy, coverage may include:

1. Third-Party Bodily Injury: Eligible legal liability for accidental injury, illness or death of a third party.
2. Third-Party Property Damage: Eligible legal liability for accidental loss of or damage to property belonging to another person.
3. Product-Related Liability: Eligible injury or property-damage claims caused by an insured product after it has left the insured’s possession or control.
4. Legal Defence Costs: Approved legal expenses incurred in investigating and defending a covered liability claim.
5. Compensation and Settlements: Covered compensation, court awards or settlements payable to a third party, up to the applicable policy limit.
6. Optional Extensions: Additional coverage may be considered for specified activities or risks when expressly included in the quotation and policy.

Who May Need This Insurance?

Public or Product Liability Insurance may be relevant for:

1. Retail shops, malls and restaurants
2. Hotels, leisure facilities and event organisers
3. Contractors, maintenance companies and service providers
4. Manufacturers, wholesalers and distributors
5. Importers, exporters and online sellers
6. Building owners and commercial property operators

The required cover depends on the company’s business activities, premises, products, contractual responsibilities, customers and geographical exposure.

Is Public and Product Liability Insurance Mandatory?

There is no single requirement making Public and Product Liability Insurance compulsory for every UAE business. However, evidence of insurance may be required under a lease, client contract, tender, event agreement, free-zone condition or sector-specific requirement.

Businesses should review their contracts and licensing obligations to determine whether a particular limit of liability or policy wording is required.

What Is Commonly Not Covered?

Depending on the policy, exclusions may include:

1. Employee Injuries: Occupational injuries are generally considered under Workers’ Compensation or Employers’ Liability insurance.
2. Professional Advice: Claims arising solely from professional advice, design or consultancy may require Professional Indemnity Insurance.
3. Motor-Vehicle Liability: Liability arising from the use of registered vehicles is generally addressed under motor insurance.
4. Product Replacement or Repair: The cost of repairing, replacing or improving the insured’s own defective product may not be covered.
5. Product Recall: Withdrawal, recall and related expenses are not automatically included.
6. Intentional or Illegal Acts: Deliberate injury, criminal conduct and knowingly unsafe activities are generally excluded.

What to Check Before Selecting a Policy:

Review these important details:

1. Insured Business Activities: Confirm that all operations, services, products and locations are correctly declared.
2. Limit of Liability: Review the limit for each occurrence, product claim and the total policy period.
3. Territorial Limits: Check where the business may operate, sell products or perform work.
4. Jurisdiction: Confirm the countries in which eligible legal proceedings may be brought.
5. Deductible: Review the amount the insured must contribute towards an eligible claim.
6. Contract Requirements: Check whether a customer, landlord or tender requires a specific limit, extension or interested-party clause.

What to Do After an Incident:

The insured business should:

1. Provide Immediate Assistance: Arrange suitable emergency or medical assistance where required.
2. Prevent Further Damage: Take reasonable steps to prevent additional injury or property damage.
3. Notify the Insurer: Report the incident as soon as possible according to the policy notification requirements.
4. Preserve Evidence: Keep photographs, CCTV recordings, witness details, contracts and incident reports.
5. Retain the Product: For a product-related incident, preserve the product, packaging, instructions, batch details and sales records where possible.
6. Avoid Admitting Liability: Do not accept responsibility or agree to a settlement without the insurer’s approval.

Documents Required:

The insurer may request:

1. Completed proposal or quotation form
2. Trade licence and company information
3. Description of business activities and premises
4. Estimated annual turnover or revenue
5. Product descriptions and intended uses
6. Sales territories and export information
7. Previous insurance-policy details
8. Claims history and known-incident declaration
9. Relevant contracts or tender requirements

Why Choose Al Buhaira Insurance?

Eligible businesses can access:

1. Public Liability Assessment: Coverage can be considered according to the company’s operations, premises and interaction with third parties.
2. Product Liability Assessment: The quotation can reflect the products supplied, sales territories, turnover and requested liability limits.
3. Combined Coverage Enquiry: Businesses may request Public Liability, Product Liability or combined cover according to their exposures.
4. Online Quotation Request: Applicants can submit their contact and business details through the dedicated quotation-request page.

Frequently Asked Questions: