Business Solutions - Liability

With the growing literacy rate, access to information, together with the development of judicial system, be an individual or a corporate one cannot escape from legal liability. Liability can arise out of personal negligence or as an employee of an organization towards employees or public in respect of bodily injury or death or damage to property. Liability can also arise out of the goods sold or supplied or during the process of conducting business. Professional negligence, errors or omissions can also lead to financial implications.          

Employer’s liability 

While employees are regarded as the most valuable asset of any organization, they can also be a major liability unless the risks exposed and obligations under law are clearly understood and protected against them. Most of the Middle Eastern Countries stipulate employer’s obligations under their respective Laws as in the case of United Arab Emirates the UAE Federal Law no 8 of 1980 (amended from time to time) stipulates the employer’s liability in the event of an accident whilst in employment. Although most of the laws do not enforce insurance protection, employers are obliged to insure against their liabilities under the laws of their respective countries as well as under Common Law and/or Sharia Law.

Besides the standard employment contracts employers may be required to provide additional perks or insurance coverage to attract and retain specialists or key personnel as part of HR strategies. Employees may also often get exposed to certain unusual risks due to their involvement in dangerous activities or their commercial travelling to hazardous areas.

Suitably worded Employer’s liability Insurance policy provides protection against legal liability arising from injuries or death of employees.


Comprehensive General Liability or CGL

Businesses or commercial enterprises are exposed to certain liabilities arising from its premises or its activities at work sites away from its base as per specific laws or under common law or tort or negligence or due to contractual or commercial or other obligations. Commercial General Liability insurance is also sometimes known as business general liability or corporate liability insurance. It covers claims of bodily injury or property damage that may arise on the business premises or during normal company operations outside of their premises.

Typical liabilities would be claims in respect of Third Party personal injury or death or property damage, Advertising injury claims, Contractual liability claims, Liquor liability claims, Completion liability claims, Claims for damages from Material damage by accident or lightning or fire or explosion etc..

Contractors are often contractually liable for loss of or damage to principles surrounding property or property in their care and custody for which they are responsible, goods being lifted or transported or erected, due to pollution, due to professional negligence etc.,

Properly worded comprehensive general liability or CGL policies can be designed to provide protection against these liabilities. Professional advice is recommended in evaluating risks exposed due to normal business activities or specific contracts.


Directors and Officers Liability

In today’s litigious environment directors or officers or senior employees are often exposed to the risks of being sued for their inappropriate or incorrect decisions. Claims can be from shareholders, employees, clients, authorities or general public and these claims can turn out to be personal responsibilities resulting in personal assets being attached or compromised for the sake of the organizations they worked for.

These types of unanticipated lawsuits against senior executives can be devastating to the concerned individual as well as the organization they represent. Many successful organizations have paid the price for not being prepared to protect the individuals who are responsible for their successes. This protection also enhances the level of confidence of senior executives besides establishing a vital sense of security in the organizational hierarchy. This may also facilitate in attracting and retaining competitive talents to boost the organization.  


Decennial Liability

In addition to the normal construction risks the owners or principals or the contractors are exposed to the risks of latent defects or defective materials supplied or defective workmanship. Usually owners or principals of Building projects take out this cover and the contractors are generally being supervised by Insurers or their appointed quantity surveyors during the process of construction to ensure the defects are eliminated. Suitably worded decennial liability policy protects in the unfortunate event of any mishap resulting in a liability.

We at Millennium Insurance Brokers with our expertise and experience locally and internationally are able to provide evaluate risks and advise on cost effective risk solutions.


Medical Malpractice

Like most other professions Medical profession is also exposed to the risks of errors and omissions and since they are directly involved with human lives these cases are sensitive in nature and often hence governed by concerned authorities. In some countries Medical malpractice Insurance is mandatory with stipulated minimum coverage and limits of indemnity.  

Typical claims could be due to wrong diagnosis, misreading prescriptions resulting in wrong treatments, overdose of medicines, mishandling of patients, ignoring symptoms etc. and the claims can be devastating in terms of financial and legal implications. Besides financial and legal implications Medical professionals are also exposed to the risks of losing licenses and reputation.           

Suitably worded Medical Malpractice Insurance policies can be designed to provide protection against risks of clinical or medical errors and omissions. 


Product Liability 

A product is defined as any physical item that is sold or is given away. A product must be “fit for purpose”, and you may be legally responsible for any damage or injury that a product you supply may cause. If you supply a product and something goes wrong with it, claimants are likely to claim from you first, even if you did not manufacture the product.

Suitably worded products liability insurance policy covers legal liability arising out of a defective product manufactured and having left your premises as against Public Liability Insurance which generally covers risks within the premises unless extended to include work away risks.


Professional Indemnity or Liability

With ever increasing competitiveness professionals operate under tremendous pressure, with demands for quick answers and cost effective solutions. This pressure can lead to errors and omissions by professionals, which often results in financial loss to your clients. This factor together with the litigious nature of the society underscores the need for protection against potential lawsuits, both for clients and professionals. Some of the professionals generally exposed are Architects, Contractors, Engineers, Doctors, Lawyers, Accountants, loss adjusters/surveyors etc.,

It is critical to seek professional help in designing the Insurance Policy to protect against above risks as the Professional Indemnity Policies are complex in nature and often require endorsing them to suit the specific needs.


Public Liability   

As Business owners you may be liable following accidental loss of or damage to property belonging to public or third party or accidental bodily injury or disease contracted during the course of the business activity. You may also be liable due to damage to the buildings you occupy as tenant or loss of or damage to the goods in your care and custody.  If your business involves your employees going out of your premises for carrying out their jobs you may be exposed to work away risks. You may also be exposed to the liabilities arising out of the food & drinks served by you or the goods sold, supplied, serviced or manufactured by you.  Besides actual claims you may require legal assistance in defending such claims or if you are liable find appropriate mechanisms in safeguarding your interest.    

These risks can be insured under Public Liability Policy suitably extended to include your specific needs.


Workmen’s Compensation     
Workmen’s Compensation is the basic protection of employees under specific laws or certain governance. Usually employer/employee relationships are defined by certain laws, which also stipulate the employer’s obligations in the event of accidents resulting in injuries or death of employees.

Like most of the countries, United Arab Emirates has the UAE Federal Law which governs the employer/employee relationship and obligations of the employer in respect of injury or death of employees while on employment. The UAE Federal Law stipulates that the employer is obliged to compensate injured employees or pay death compensation to the members of deceased family. Details of the UAE Federal Law and employer’s obligations towards employees can be viewed from ………………………… 

Workmen’s Compensation Policies can be extended to include Employer’s liability as per Common or Sharia Law with specific limits of liability to suit the need.



Business Solutions
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• Liability
  - Employer's Liability
  - Comprehensive General Liability
  - Directors & Officer's Liability
  - Decennial Liability
  - Medical Malpractice
  - Products Liability
  - Professional indemnity
  - public Liability
  - Workmen's Compensation
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