Third Party Liability (TPL) - General Business Liability¶

Product Code¶

5010 - General Third Party Liability

Coverage Basis¶

General Third Party Liability insurance covers businesses against claims made by third parties for:

Bodily injury to third parties
Property damage to third parties
Legal defense costs
Court costs and legal expenses
Investigation costs

Note: This is General/Public Liability for businesses, not Motor TPL (which is product 4030).

Key Features¶

Occurrence-Based Coverage¶

Covers incidents that occur during policy period
Claims can be made after policy expires
Incident must occur while policy active
Unlimited claims reporting period

Third Party Focus¶

Covers claims from third parties only
Does not cover insured's own property
Does not cover insured's employees (see WC)
Public and customer protection

Legal Defense¶

Insurer defends all claims
Legal costs covered even if claim groundless
Expert witness costs
Court representation

Coverage Components¶

What's Covered¶

Bodily Injury to Third Parties: - Death or injury to visitors/customers - Medical expenses for injured parties - Compensation for pain and suffering - Loss of earnings of injured party

Property Damage to Third Parties: - Damage to customer property - Damage to neighbor's property - Damage during business operations - Accidental damage to third party assets

Legal Costs: - Defense lawyer fees - Court costs and filing fees - Expert witness fees - Investigation costs - Settlement negotiation costs

What's Not Covered (Typical Exclusions)¶

Intentional acts or willful damage
Employer's liability (covered under WC)
Professional indemnity (separate coverage)
Product liability (may need separate extension)
Contractual liability
Employee injuries (WC coverage)
Pollution and environmental damage
Cyber liability

Who Needs This Coverage¶

Mandatory Scenarios¶

Businesses with customer-facing operations
Companies with business premises
Service providers visiting client sites
Events and exhibitions
Manufacturing and production

Business Types¶

Retail and Trading: - Customer injuries in store - Property damage during delivery - Slip and fall incidents

Restaurants and Hospitality: - Customer injuries on premises - Food poisoning claims (with extension) - Property damage incidents

Offices and Services: - Visitor injuries - Damage during service provision - Professional negligence (if extended)

Manufacturing: - Visitor injuries on-site - Damage from operations - Product liability (if extended)

Sum Insured Selection¶

Typical Limits¶

Small Businesses: - AED 500,000 - AED 1,000,000 - Suitable for offices, small shops - Low-risk operations

Medium Businesses: - AED 1,000,000 - AED 5,000,000 - Retail, restaurants, services - Standard risk operations

Large Businesses: - AED 5,000,000 - AED 50,000,000+ - Manufacturing, large retailers - High-risk or high-value operations

Limit Structure¶

Per Occurrence: Maximum per single incident Aggregate: Maximum for all claims in policy period

Example: AED 2,000,000 per occurrence / AED 4,000,000 aggregate

Coverage Territory¶

Standard: UAE only

Extensions Available: - GCC countries - Worldwide coverage (excluding USA/Canada) - Worldwide including USA/Canada (higher premium)

Optional Extensions¶

Product Liability¶

Covers defective products
Product recall expenses
Extended product coverage

Employers' Liability¶

Additional to WC coverage
Common law claims
Extended employer protection

Professional Indemnity¶

Can be added as extension
Covers professional errors
Advice and service errors

Contractual Liability¶

Liability assumed under contracts
Indemnity clauses
Hold harmless agreements

Mandatory Requirements¶

Required Information¶

Business Details
Trade license
Business activity
Annual turnover
Number of employees
Premises Information
Location and address
Type of premises
Area and occupancy
Coverage Requirements
Sum insured needed
Territory of coverage
Extensions required

Risk Assessment Factors¶

Business type and activities
Previous claims history
Risk management measures
Safety procedures in place

Claims Scenarios¶

Example 1: Customer Injury¶

Incident: Customer slips and falls in shop Coverage: Medical expenses + compensation for injury Action: Report immediately, document, notify insurer

Example 2: Property Damage¶

Incident: Delivery damages client's property Coverage: Repair/replacement costs Action: Document damage, obtain quotes, claim settlement

Example 3: Third Party Injury¶

Incident: Business operations cause injury to passerby Coverage: Medical costs + legal defense if sued Action: Report to police and insurer, cooperate with investigation

Claims Process¶

Immediate Actions¶

Ensure safety and provide first aid if needed
Document incident (photos, witness details)
Do not admit liability
Notify insurer within 24-48 hours
Preserve evidence

Documentation Required¶

Incident report with full details
Photos and videos of scene
Witness statements
Police report (if applicable)
Medical reports (for injuries)
Damage estimates/repair quotes

Insurer's Role¶

Investigates the claim
Appoints lawyers if needed
Negotiates settlements
Defends in court if required
Pays valid claims

Policy Period¶

Standard: 12 months (annual policy)

Mid-term Changes: Endorsements available for: - Sum insured changes - Business activity changes - Coverage extensions - Premises changes

Regulatory Considerations¶

Trade License Requirement¶

Some free zones require TPL
Certain business activities mandate coverage
Facility management requires proof

Contractual Requirements¶

Landlords may require TPL
Clients may require proof of coverage
Tender/contract requirements

Next Steps¶

Quote Requirements - Information needed for TPL quote
Premium Calculation - SI-based rating
Endorsements - Mid-term changes
Commission - Broker commission structure

Conditions & Exclusions¶

Standard Exclusions¶

What's NOT Covered:

Intentional Acts
Deliberate damage or injury
Willful misconduct
Criminal acts
Employer's Liability
Employee injuries (need WC coverage)
Employee property damage
Labor-related claims
Professional Indemnity
Professional errors or advice
Professional negligence
Errors in professional services
Product Liability (Unless Extended)
Defective products
Product recalls
Manufacturing defects
Pollution & Environmental
Pollution incidents
Environmental contamination
Toxic releases
Contractual Liability
Liability assumed under contract
Hold harmless agreements
Warranty obligations
Property in Care, Custody, or Control
Customer property being worked on
Property held for servicing
Bailment situations

Business Types We DON'T Insure¶

Declined Activities: - Arms and ammunition dealers - Explosive manufacturers - Nuclear facilities - Hazardous chemical manufacturing - Asbestos-related businesses

High-Risk Businesses (Special Terms): - Nightclubs and bars - Amusement parks and rides - Swimming pools and water parks - Fireworks and pyrotechnics - Scaffolding contractors

Business Activities Requiring Approval¶

Food manufacturing (need HACCP certification)
Chemical trading (need material data sheets)
Waste management
Recycling facilities
Petrol stations and fuel storage

Geographic Limitations¶

Standard Coverage: - UAE territory only

Extended Coverage Available: - GCC countries - Worldwide excluding USA/Canada - Worldwide including USA/Canada (significant additional premium)

Not Covered: - Operations in war zones - Sanctioned countries - High-risk political areas

Sum Insured Limitations¶

Minimum Limits: - Typically AED 500,000 minimum - Lower limits may be declined

Maximum Limits: - Standard: Up to AED 50,000,000 - Above requires facultative reinsurance

Aggregate vs. Per Occurrence: - Must specify both limits - Aggregate cannot be less than per occurrence

Underwriting Declinations¶

We Will NOT Quote if: - More than 3 TPL claims in last 5 years - Ongoing litigation - Adverse regulatory actions - Poor risk management practices - Hazardous operations without proper safety

Occupancy-Specific Conditions¶

Retail Shops: - Must have adequate walkways - Floor surfaces must be safe - Stock properly stored

Restaurants: - Food poisoning cover may need specific extension - Kitchen safety measures mandatory - Fire suppression systems required

Offices: - Standard terms apply - Visitor safety measures needed

Manufacturing: - Machinery guards mandatory - Safety protocols required - Regular inspections needed

Contractors/Service Providers: - Must have proper licenses - Qualified workforce - Safety equipment mandatory

Special Conditions¶

Excess/Deductible: - Typically AED 10,000 - AED 100,000 - Varies by business type and turnover - Higher excess for high-risk activities

Products Extension: - Available but needs specific underwriting - Product testing/certification required - Recall costs typically excluded

Defense Costs: - Included within limit of liability - OR in addition to limit (policy wording specific) - Legal costs for defending claims

Claims Conditions¶

Immediate Notification Required: - Serious injury: Within 24 hours - Property damage: Within 48 hours - Potential claims: As soon as aware

No Admission of Liability: - Do not admit fault at scene - Do not agree to pay damages - Notify insurer before any settlement

Cooperation Required: - Provide all information requested - Attend court if needed - Comply with insurer's instructions

Special Requirements: - Valid food handling license - HACCP certification (for manufacturers) - Regular health inspections - Staff hygiene training

Food Poisoning: - May need specific extension - Must maintain hygiene standards - Claims frequency monitored

Critical for Portal: Validate business activity against declined list. Check claims history before quoting. Flag high-risk activities for underwriting approval.