Liability claims - whether from a customer slip-and-fall or a faulty product - can quickly impact your finances and reputation. Getting liability insurance is essential for effective risk management. This guide covers where to buy it, how to choose the right policy, and what costs to expect.
What Is Liability Insurance and Why It Matters
Liability insurance protects individuals or businesses when they are held legally responsible for third-party injury or property damage. In the UAE, courts can award compensation running into millions of dirhams, and some licences (e.g., construction, healthcare) require proof of cover.
Types of Liability Insurance You Can Get
- Public Liability—covers accidental injury or damage on your premises.
- Product Liability—protects manufacturers and retailers against claims arising from defective goods.
- Professional Indemnity—covers negligence claims for consultants, doctors, architects and accountants.
- Employer’s Liability—mandatory to cover workplace injuries that exceed the UAE Labour Law compensation.
- Directors & Officers (D&O)—protects company executives against management-related lawsuits.
Where to Buy Liability Insurance
- Direct from Insurance Providers
Global and regional brands such as AXA, Orient, RSA, Sukoon and Emirates Insurance allow you to purchase liability policies through corporate sales teams.
- Through Insurance Brokers (like insurancehub.ae)
Brokers compare quotes from multiple insurers, negotiate custom clauses and assist with claims—particularly valuable for SMEs lacking in-house risk managers.
- Online Comparison Platforms
Digital portals let you upload business details once and receive side-by-side proposals. When you use insurancehub.ae, you also get access to licensed advisors who ensure policy wording aligns with UAE law.
| Buying Channel | Advantages | Potential Drawbacks |
|---|---|---|
| Direct Insurer | Single point of contact, brand familiarity | Limited to one insurer’s pricing and wording |
| Broker | Market-wide comparison, claims advocacy | May charge service fee |
| Online Platform | Fast, transparent quotes 24/7 | Some complex risks may still need manual underwriting |
How to Choose the Right Liability Insurance Plan
- Identify exposures: client footfall, product safety, professional advice.
- Check contractual requirements: main contractors or free-zone authorities often stipulate minimum limits.
- Compare limits and deductibles side by side.
- Review exclusions—common ones include gradual pollution or cyber risk.
- Evaluate insurer rating (S&P/AM Best) and local claims network.
Cost of Liability Insurance in the UAE
Premiums vary by industry, turnover and past claims. As a ballpark, small consultancies may pay AED 1,500–3,000 per year for AED 1 million professional indemnity, while a retail store might pay AED 2,500–4,000 annually for public liability. Higher-risk trades (construction, F&B) face higher rates.
Documents Needed to Apply for Liability Insurance
- Trade licence copy
- Financial statements or turnover projection
- Details of services/products
- Past five-year claims history
- Risk-management procedures (for higher limits)
Common Mistakes to Avoid When Buying Liability Insurance
- Choosing the lowest premium but insufficient limit
- Ignoring retroactive dates on professional indemnity
- Failing to add additional insureds when contractually required
- Not disclosing previous incidents or near misses
- Overlooking jurisdiction and governing-law clauses
How to Get Started Today
- List your exposures and required limits.
- Visit insurancehub.ae to submit a quick questionnaire.
- Compare at least three quotes; negotiate extensions like cross-liability or advertising injury.
- Bind coverage electronically and store your certificate for tender submissions.
Don’t leave your business exposed. Get a free, no-obligation liability quote on insurancehub.ae today and protect your hard-earned reputation.
