Public Liability Insurance in Iran (Third-Party)
For shops, guilds, service units and commercial premises that host customers and third parties.
Persian twin page (authoritative): /liability/commercial/public-liability
Short answer
Public liability insurance (civil third-party liability) compensates third parties for bodily injury and property damage that the insured business causes in the course of its activity — customers, visitors and passers-by. It is the base civil-liability cover for shops and service units and responds upon proof of fault or causation.
The final premium is issued upon official quotation — no premium figures are published on this site.
Who needs this policy?
- Retail shops, guild units and service businesses receiving customers on site
- Offices, consultancies and clinics receiving visitors
- Workshops, warehouses and small production units affecting neighbors
- Landlords and tenants of commercial premises
- Owners and possessors of buildings and installations under Civil Code possession rules
What is covered?
| Coverage | Description |
|---|---|
| Third-party bodily injury | Diyeh, medical and rehabilitation costs for customers, visitors and passers-by injured on the insured premises or by the insured activity. |
| Third-party property damage | Repair or replacement of third-party property damaged by the business operations — for example fire spread, water leakage or falling objects. |
| Fire and explosion spread | Damage caused to third parties by fire or explosion originating from the insured unit, complementing fire third-party liability. |
| Legal defense costs | Attorney fees and procedural costs in civil proceedings brought by injured third parties against the insured business. |
| Tenancy-related liability | Liability of the tenant toward the landlord and of the landlord toward third parties, per the schedule of insured interests. |
| Cross-liability between co-insureds | Where several insured parties share the premises, the policy can treat each insured's liability toward the others as insurable, per the schedule. |
What is not covered? (Exclusions)
- Injuries to the insured's own employees, covered under employers liability insurance
- Damage to the insured's own property and stock
- Liability assumed by contract beyond what the law itself imposes
- Deliberate acts of the insured or violations of explicit safety orders
- Professional service errors, which belong to professional liability insurance
Issuance conditions
- Accurate declaration of the business activity and premises at issuance
- Compliance with municipal, safety and fire regulations of the unit
- No undisclosed incidents or known claims at policy inception
Required documents
- Business license or guild membership certificate
- Identity documents of the insured (natural or legal person)
- Description of the premises, floors and neighboring exposure
- Previous liability policy, for renewal and no-claims discount
How to buy — step by step
Quotation and consultation
Submit the quote request with the business activity; the advisor proposes a limit reflecting the premises exposure.
Documents and official proforma
After the activity details are received, an official proforma invoice is issued on Bimeh Iran tariffs.
Premium payment
Pay through the banking gateway or a bank receipt; cover starts the moment issuance is confirmed.
Policy delivery
The printed and electronic policy, with the declared activity and premises, is delivered within one working day.
How to claim — step by step
Preserve the scene
Preserve the condition that caused the damage and photograph it before cleaning or repair, where safely possible.
Immediate notification
Notify the agency within five working days of the incident, per the policy's notification condition.
Claim form and documents
Submit the claim form, the injured party's identity details, witness statements, and medical or repair invoices.
Liability assessment
The adjuster confirms liability under the Civil Code's possession rules or the Civil Liability Act's fault rules.
Agreement and payment
Compensation is agreed with the third party or fixed by ruling and paid subject to the policy deductible.
Claim notification deadlines and assessment details follow the policy general conditions and the Iranian Insurance Act (Article 30 practice: notification within five working days).
FAQs — Public Liability Insurance
Legal sources
Civil Code of Iran — Articles 328 to 335 — liability of possessors
Civil Liability Act of Iran (1960) — Article 1 — compensation of damage caused by fault
Iranian Insurance Act (1936) — Article 30 — five-day claim notification
Iranian statutes are authoritative in Persian; English titles above are orientation references.
Reviewed by the Iran Liability Insurance content team
Reviewed by the licensed team of Agency No. 20616 of Bimeh Iran, specialized exclusively in liability insurance.
Legal review: licensed team of Agency No. 20616, Bimeh Iran — Last reviewed: 24 October 2026
Get Public Liability Insurance through the official Bimeh Iran agency
The online quote form is in Persian. English-speaking visitors may submit inquiries by email in English, and a consultant will respond in English. The quotation is issued on current Bimeh Iran tariffs after the limit of liability is agreed.