UAE businesses face risks that require specific insurance coverage — some mandatory by law, others strongly advisable. Here is a complete UAE business insurance guide for 2025.
Mandatory UAE Business Insurance
Employee Health Insurance: Mandatory in Dubai (since 2014), Abu Dhabi (since 2006), and increasingly required in other emirates. All employees must be provided health insurance by their employer. Minimum cover: AED 150,000 per year (basic enhanced package). Annual cost: AED 600–2,500 per employee depending on plan and insurer. Worker Compensation / ADHICS (Abu Dhabi): Abu Dhabi requires employers to provide worker compensation insurance. Domestic Worker Insurance: AED 720/year mandatory under MOHRE domestic worker rules. Motor Insurance: Third-party motor insurance is mandatory for all UAE vehicles. Comprehensive motor insurance is not mandatory but strongly recommended.
Recommended UAE Business Insurance
Professional Indemnity (PI): Protects consultants, lawyers, architects, accountants, and other professionals against claims that their advice or services caused a client financial loss. Cost: AED 2,000–15,000/year depending on profession and cover amount. General Liability: Covers third-party bodily injury or property damage claims against your business. Important for: retail, F&B, construction, hospitality. Cost: AED 3,000–20,000/year. Cyber Insurance: Covers data breaches, ransomware attacks, and cyber incidents. Growing in importance with UAE PDPL enforcement (2022–). Cost: AED 5,000–50,000+/year depending on company size and data sensitivity. Commercial Property: Covers damage to business premises, equipment, and stock. Required if you have a significant physical asset base. Cost: AED 2,000–20,000+/year.