« Back to Glossary IndexLiability
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.
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The opinions expressed in this blog are those of the respective authors. ATB Legal does not endorse these opinions. While we make every effort to ensure the factual accuracy of the information provided in our blogs, inaccuracies may occur due to changes in the legislative landscape or human errors. It is important to note that ATB Legal does not assume any responsibility for actions taken based on the information presented in these blogs. We strongly recommend taking professional advise to ensure the best possible solution for your individual circumstances.
About ATB Legal
ATB Legal is a full-service legal consultancy in the UAE providing services in dispute resolution (DIFC Courts, ADGM Courts, mainland litigation management and Arbitrations), corporate and commercial matters, IP, business set up and UAE taxation. We also have a personal law department providing advice on marriage, divorce and wills & estate planning for expats.
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