UAE Free Zone Insurance Requirements 2026 — What Your Company Must Have
UAE free zone companies have several mandatory insurance requirements. Missing required insurance can lead to visa issues, regulatory fines, and exposure to liability. This guide covers what insurance you must have in 2026.
Mandatory Insurance for UAE Free Zone Companies
1. Health Insurance (Compulsory in Dubai and Abu Dhabi)
Health insurance is mandatory for ALL UAE residents, including UAE investor visa holders and employees. Requirements:
- Dubai: All Dubai visa holders must have health insurance. Employer must provide basic health insurance for employees earning under AED 4,000/month.
- Abu Dhabi: Health insurance mandatory; must cover AED 250,000 minimum annual coverage.
- Other Emirates: Strongly recommended; likely to become mandatory across all UAE.
Typical cost: AED 600-3,000/year for basic individual coverage; AED 5,000-15,000 for comprehensive family coverage.
2. ILOE (Involuntary Loss of Employment Insurance)
Since 2023, all private sector employees (UAE nationals and expatriates) must be registered for UAE ILOE. Employers are responsible for registering employees. Premium: approximately AED 5/month (shared between employer and employee). Register at iloe.gov.ae.
3. Workmen Compensation Insurance
Required for construction, industrial, and manual worker activities. Covers employees against work-related injuries.
Recommended (Not Always Mandatory) Insurance
Professional Indemnity (PI) Insurance
Strongly recommended for: consultants, IT companies, legal services, accountants, architects. Covers claims from clients arising from professional errors or omissions. Many international contracts require PI coverage (often USD 1M minimum).
General Liability Insurance
Covers third-party bodily injury and property damage. Important for companies with physical premises, events, or client-facing operations.
Where to Get UAE Business Insurance
UAE insurance brokers who specialise in SME and free zone company insurance:
- AXA Gulf (now GIG Gulf)
- Zurich Insurance
- RSA Insurance
- Online platforms: Bayzat, Policybazaar UAE