UAE Free Zone Company Insurance Requirements 2026 — What Is Mandatory?
Many UAE free zone company owners are unsure about insurance requirements. Here is the 2026 guide on what insurance is mandatory and what is recommended.
Mandatory Insurance for UAE Free Zone Companies
1. Employee Health Insurance (Mandatory for Employees in Dubai)
Dubai Health Authority (DHA) mandates that all employers in Dubai provide basic health insurance to employees:
- Minimum Essential Benefits (MEB) plan: AED 500-700 per employee per year (basic plan)
- Enhanced plans: AED 1,500-5,000+ per employee per year
- Applies to all employees sponsored on work visas in Dubai
- Abu Dhabi: Abu Dhabi Health Services Company (SEHA) scheme has its own rules
2. Workers Compensation Insurance (for Companies with Workers)
Required for companies with employees performing manual or hazardous work. Covers work-related injuries and occupational diseases.
Recommended but Not Mandatory Insurance
Professional Indemnity Insurance (Errors and Omissions)
Highly recommended for professional service companies (consultants, doctors, engineers, lawyers). Covers claims arising from professional mistakes or negligence.
General Liability Insurance
Covers third-party bodily injury or property damage claims arising from business operations. Recommended for all companies with physical operations or client visits.
Directors and Officers (D&O) Insurance
Covers personal liability of company directors and officers for decisions made in their corporate roles. Recommended for company directors especially in regulated industries.
Cyber Insurance
Covers data breaches, cyber attacks, and related liabilities. Increasingly recommended for tech companies, e-commerce businesses, and companies handling personal data.
UAE Investor Visa and Health Insurance
For UAE investor visas, health insurance is required as part of the Emirates ID and visa application:
- Health insurance must be purchased before or during the visa application
- Policy must be valid in UAE
- Basic policies start from AED 700-1,200/year for individual investor visa holders