Public Liability Insurance

Insurance for businesses against third-party claims for injury or property damage.

Product Liability Insurance

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What is Public Liability Insurance?

Public Liability Insurance, also known as PLI, is a type of insurance policy designed to protect businesses from the risks associated with claims of bodily injury and property damage (BI/PD), negligence or damages caused by their products and services (within a specified premise), and more. This insurance covers medical and legal expenses related to third-party injuries, property damage, and other types of losses. 

Who needs Public Liability Insurance? 

Public Liability Insurance in UAE is required by all entities, irrespective of their size, nature, and location. Companies operating in industrial as well as non-industrial capacity are required to have this insurance in place.

As per the UAE laws, companies in free zones are compulsorily required to have Public Liability Insurance. This insurance is often provided as a package in an SME Insurance.

Why get Public Liability Insurance?

Public Liability Insurance is a must-have policy for any business operating in the UAE. The following are the key advantages of Public Liability Insurance - 

  • Helps with the compliance requirements when renewing Dubai trade license
  • Comprehensive Public Liability Insurance plans provide basic bodily injury and property damage coverage with a few extra add-on coverages and are fairly priced compared to other liability policies.
  • The policy also provides coverage for accidents taking place due to natural calamities and impacting third parties

Common Risk Scenarios in Public Liability Insurance

  • Slip and fall accidents on business property
  • Damage to third party property caused by business activities
  • Business activities that cause environmental damage to surrounding areas
  • Bodily injury to guests at a restaurant arising from an earthquake and the following medical expenses payments
  • Soot damaging a neighbouring property following a fire incident at the insured's property
  • Food poisoning after consuming refreshments at a business meeting
  • Release of toxic waste by an industrial unit damaging nearby agricultural areas
  • Damage to property under care, custody and control of the insured following an accident

Major Inclusions of Public Liability Insurance

When examining Public Liability Insurance costs or quotes, it's essential to check the coverage provided and ensure that it meets your business requirements. Given below are the major inclusions of Public Liability Insurance - 

  • Legal fees: Public Liability Insurance covers the costs of defending yourself in court if you are sued. 
  • Medical costs: If someone is injured on your premises, Public Liability Insurance can help you cover their medical bills.
  • Damage to rented premises: If you rent out a space for your business activities, Public Liability Insurance can cover any damage caused to the premises by third parties.
  • Coverage for property under care, custody, and control of the insured.
  • Coverage for food and beverages-related claims.
  • Coverage for claims resulting from discharge of treated effluents
  • Transportation liability coverage 
  • Coverage for pollution claims arising from sudden accidents taking place at the premise of the insured.

Major Exclusions of Public Liability Insurance

Reading the policy in detail and looking at the exclusions is crucial before buying cheap Public Liability Insurance. The following is a list of the major exclusions of Public Liability Insurance - 

  • Professional advice: Professional advice that does not involve providing goods and services is not covered by Public Liability Insurance. 
  • Damages to property owned by insured: Any damages caused to property owned by the insured are generally excluded from Public Liability Insurance policies. 
  • Intentional acts: Public Liability Insurance generally does not cover any losses or damages resulting from intentional acts carried out by the insured or its employees.
  • Fines and penalties 
  • Claims related to defamation 
  • Product liability insurance and completed operations coverage 
  • Prior and pending cases 

Factors Affecting the Pricing of Public Liability Insurance

The cost of Public Liability Insurance depends on various factors such as the type and level of coverage you buy, your business size, and your industry. Listed below are some factors that affect the pricing of Public Liability Insurance.

  • Size and scope of the business: The size and scope of activities related to the business determines the risk to which the business is exposed, which impacts the Public Liability Insurance price as well. 
  • Type of business: Different businesses are exposed to different risk levels as per the type of industry, with those differences reflecting in the affecting Public Liability Insurance prices. 
  • Location of the business: The location is another factor affecting the price of Public Liability Insurance. Generally, businesses established in certain locations are more prone to damage and attract higher premiums compared to those in regular areas.  
  • Number of employees: The number of employees that a business has can affect the amount of risk it is exposed to, which, in turn, affects the price of Public Liability Insurance. 
  • Existing claims history: The business's claims history also affects the price of Public Liability Insurance. If the said business has made multiple claims in the past, they may be charged a high premium for a new plan. 
  • Deductible amount: The higher the deductible amount, the lower the premium for Public Liability Insurance. 

At Policybazaar UAE, we take pride in our world-class risk assessment capabilities and plans which enable us to craft cost-effective risk management strategies through insurance that cater to your specific requirements. We are here to provide you with the peace of mind and help you safeguard your business, which is crucial for achieving your future objectives.


Q1. What is Public Liability Insurance in UAE?

Ans: Public Liability Insurance refers to the type of insurance cover designed for entrepreneurs and businesses against third-party liabilities arising from accidents or losses during business operations.

Q2. Do I need Public Liability Insurance in the UAE?

Ans: You should get Public Liability Insurance if any of the following are applicable to you or your business:

  1. Are there any properties like buildings, warehouses, or offices, that you rent or own?
  2. In your line of work, are you required to go to a client's location or work in public spaces?
  3. Do you produce or distribute any products as part of your business?
Q3. What are the two different types of Public Liability Insurance in the UAE?

Ans: Public Liability Insurance in the UAE can be broadly categorised in the following -

  • Cover for Premises Risks - This type of policy cover considers only the claims made by a third party arising from your business property. 
  • Cover for All Business Operations - This type of insurance covers all the claims made by third parties associated with your business operations, like loss of client’s data, public property damage, and so forth.
Q4. How is the cost of Public Liability Insurance determined?

Ans: The cost of Public Liability Insurance, just like other insurance types, is variable and is based on various factors such as -

  1. Industry dynamics 
  2. Size and nature of your business
  3. History of claims
  4. Policy requirements (specific)
Q5. Does Public Liability Insurance protect damages made to my own business?

Ans: No. Public Liability Insurance covers only those losses claimed by third-party members, and doesn’t cover damages to own business. For the latter case, you would be required to have Property Insurance.

Q6. What type of business requires Public Liability Insurance?

Ans: Any business that deals with clients, the general public, and more should get Public Liability Insurance.

Q7. What is usually covered in Public Liability Insurance?

Ans: Public Liability Insurance typically covers the following -

  1. Cost of repairs
  2. Medical fees
  3. Personal compensation
  4. Legal costs
Q8. What are the major benefits of opting for Public Liability Insurance?

Ans: Here are some of the comprehensive inclusions and benefits of Public Liability Insurance -

  1. The policy offers protection to your business or rented property from third-party claims.
  2. It covers any injury or disease to a third party on the business premises.
  3. The plan also takes care of the legal expenses and court proceedings.
  4. The plan covers IPR violations by your marketing or advertising operations in case of any liabilities.