Public Liability & Comprehensive, General Liability, Product Liability
Why Liability Insurance?
Somewhere along the human life time, on many an occasion, each of us tends to be a little careless and negligent due to reasons best left alone and unexplainable!
As responsible citizens and residents of UAE, we are all liable for the damages caused by our careless, negligent acts.
Liability can arise from either of the following:
- By Tort/Common law/Sharia law – meaning – liability arising out of negligence (the simple road accident – motor car liability)
- By Statute – meaning – liability arising out of a provision in a law (employer held liable under labour law)
- By Contract – meaning – liability arising out of failure to abide or inadequate performance as per the signed and agreed contract
Broadly classified, liability arises from:
- Premises owned, occupied or used
- Products manufactured, sold or distributed
- Services rendered (including employee negligence)
The impact of enduring liability can be quite damaging. It could shake the very foundation of business and individual financial stability.
What solutions do you get from Al Nabooda Insurance Brokers?
At ANIB, we facilitate a wide range of reliable solutions to make our clients breathe easy.
Cover is arranged for:
- Compensation in respect of legal liability towards accidental Third Party Property Damage and/or Third Party Death/Bodily Injury and
- The resulting Legal Defense costs and expenses
The following solutions are currently on offer:
- Public Liability (Premises and Operations)
- Product Liability
- Workmen’s Compensation/Employer’s Liability
- Professional Indemnity
Public Liability (Premises and Operations)
We can arrange a Public Liability policy that proves its versatility by covering small offices to large industrial facilities as per your requirement. Coverage to multiple locations and operations /services rendered outside you office/facility can be facilitated too.
The following extensions can be purchased additionally to strengthen your basic policy:
- Food and Drinks Extension – covers liability against any inadvertent adulteration in the food or drinks offered to your guests in your premises
- Tenants Liability Extension – covers liability towards your landlord for any accidental damage caused due to your negligence during the period of your tenancy contract
- Landlord’s Liability Extension – covers liability towards tenants for any accidental damage caused due to the landlord’s negligence during the contract tenancy period
The Insured occupies an office in a building in a busy business district. Fire emerges from the kitchen of the Insured and causes the following damages before it was extinguished.
- Bodily Injury to the guests inside the office – USD 150,000 towards compensation and medical expenses
- Property Damage to the guests inside the office – USD 10,000 towards damages
- Property Damage to the Insured’s property – USD 250,000 towards damages
- Damage to the building occupied – USD 450,000 towards repairs to the building
- Fire spreads to the neighbouring building – USD 150,000 towards damages
- Insured also incurs legal expenses of USD 5,000 towards defending the claim from the above parties
The Insured had taken a Public Liability policy for a limit of USD 1 Million with Tenant’s Liability Extension up to USD 500,000. Policy has a deductible of USD 500 towards Third Party Property Damage; but ‘nil’ for Third Party Bodily Injury.
Claim Description Bodily Injury Property Damage Comments 1. Bodily Injury to Guests USD 150,000 2. Property Damage to Quests USD 10,000 3. Damage to Insured’s Property Insured cannot be Liable towards his own Property. However, this can be covered under the Property Insurance 4. Damage to Building Occupied USD 450,000 This amount is allowed as the insured had purchased
Tenant’s Liability Extension
5. Damage to Neighbouring Building USD 150,000 Gross Claim Amount USD 150,000 USD 610,000 Less: Policy Deductible Nil USD 500 Claim Amount after Deductible USD 150,000 USD 609,500 Total Claim Amount: USD 759,500
Legal Expenses: USD 5,000
Nett Amount Payable: USD 764,500
This covers legal liability for accidental Third Party Property Damage and/or Third Party Death/Bodily Injury arising out of use or consumption of a defective product manufactured or distributed or sold by you. This exposure is generally excluded under the Public Liability policy and hence a separate policy is required. We recommend you to avail this cover in conjunction with Public Liability policy to protect your interest better.
The Insured has a Supermarket chain where he sells products of different manufacturers. The Insured had without his knowledge stocked a consignment of contaminated meat which was consumed by different consumers resulting in hospitalisation and other medical expenses. Insured incurs liability as below:
- The claimants proceed with legal action and claim compensation totalling USD 1 Million for which the court awards USD 750,000 as compensation.
- Legal expenses of USD 20,000
In this case, the claim is paid in full up to the policy limits. The Insurer may also request for a letter of subrogation from the Insured to proceed with the recovery the suppliers of the adulterated meat.