Liability
Liability refers to the legal responsibility of an individual or business for financial losses, damages, or legal violations. In the UAE, liability can be contractual (breach of agreements), tort-based (negligence or personal injury), or statutory (regulatory non-compliance). Directors and business owners may face personal liability in cases of fraud, bankruptcy, or unpaid financial obligations, as governed by Federal Decree-Law No. 32 of 2021 on Commercial Companies. Professional liability insurance and indemnity clauses in contracts help mitigate risks for businesses operating in high-liability sectors such as construction, finance, and healthcare.
