What does public liability insurance pay for?
Public liability insurance pays the compensation and legal costs you owe when your business injures someone or damages their property. UAE policies cover third parties, not your own staff, and some add cover for food you serve and damage to a landlord's premises.
What does the policy pay?
It pays the compensation your business is legally liable for when someone outside the business is injured or their property is damaged because of your work.1 It also pays the cost of defending the claim.23
Orient’s policy covers accidental property damage and death or injury to third parties arising from the business within the territory named on the policy.1 DMCC describes the cover it asks its companies for in the same way: accidental bodily injury and accidental loss or damage to property, caused in connection with the business.4
Tokio Marine gives two examples: a customer trips on something in your premises, or an employee damages a customer’s property.2
Who counts as a third party?
Anyone who is not working for you. United Fidelity’s wording covers death or injury to any person other than people in your service or working for your sub-contractors.3 Property you own, or that is in your care or control, is outside the cover.31
The things a public liability policy leaves out are on what public liability does not cover.
Does the policy only pay if you are at fault?
The policy pays what you become legally obliged to pay.5 Under the UAE Civil Transactions Law, every act causing harm to another obliges the person who did it to compensate for the damage.6 The insurer’s duty under a liability policy only arises once the injured person makes a claim against you.6
How UAE law decides who pays is on liability under UAE law.
What extra cover do UAE policies include?
It varies by insurer, so read the policy schedule. Two published examples:
| Extension | GIG Gulf, Business Secure | Tokio Marine |
|---|---|---|
| Damage to your landlord’s premises | Up to 5% of the limit of indemnity | Legal liability towards your landlord or tenant |
| Food and drink you serve | Food and drink sold or supplied at or from your premises | Food and drink served at your premises |
| Business trips | Occasional visits outside the territory | Worldwide on non-manual business trips by employees |
| First aid | Emergency medical or first aid treatment by you or your employees | Not named |
| Cross liability | Not named | Included |
GIG Gulf also covers personal possessions of employees and visitors up to AED 25,000 for each claim, as an exception to its exclusion of property in your care.5
Where does the cover apply?
Within the territory and under the law named in your schedule.51 GIG Gulf’s claims procedure says the policy applies only to judgments from a court in a Gulf Cooperation Council country.5
If you work or sell outside the UAE, ask the insurer to name those countries in the schedule before you buy.
The small print
- Defence costs. GIG Gulf covers defence costs and expenses incurred with its prior consent.5
- Excess. GIG Gulf’s Business Secure wording applies an excess of AED 2,500 to each claim for property damage only.5
- Law. Articles 246 and 965 of the Civil Transactions Law issued by Federal Decree-Law No. 25 of 2025, in force from 1 June 2026, which replaced Federal Law No. 5 of 1985.6
Sources
6
1Orient Insurance, Public Liability Insurance. Last checked 12 Nov 2026. Source document: Public Liability Insurance
2Tokio Marine and Nichido Fire Insurance, UAE, Public Liability Insurance. Last checked 12 Nov 2026. Source document: Public Liability Insurance
3United Fidelity Insurance Company, Liability Insurance. Last checked 12 Nov 2026. Source document: Liability Insurance
4DMCC Help Centre, What is the Third Party Liability Insurance Certificate and what does it cover?. Last checked 12 Nov 2026. Source document: What is the Third Party Liability Insurance Certificate and what does it cover?
5GIG Gulf, Business Secure, Beauty and Personal Care policy handbook. Section 4, Public Liability. Last checked 12 Nov 2026. Source document: Business Secure, Beauty and Personal Care policy handbook
6UAE Legislation, Federal Decree by Law No. (25) of 2025 Promulgating the Civil Transactions Law. Effective 1 Jun 2026. Last checked 12 Nov 2026. Source document: Federal Decree by Law No. (25) of 2025 Promulgating the Civil Transactions Law
- Owner
- Publicliabilityinsurance.ae research team
- Last review
- Next review due
- 11 May 2027
- Status
- Published