UAE Business Insurance Reference Guide for Free Zone Companies 2026
UAE businesses need various types of insurance. Here is the 2026 reference guide to business insurance for UAE free zone companies.
In this guide:
Mandatory Insurance for UAE Free Zone Companies
- Health insurance (Dubai employees): Mandatory under Dubai Health Authority rules; all Dubai-based employees must have health insurance
- Workers compensation: Recommended; employer liability for employee accidents is a UAE legal requirement
- Professional indemnity: Some professional activities (lawyers, accountants, engineers) may require PI insurance for UAE activities
Common Optional Business Insurance
- Professional Indemnity (PI) / Errors and Omissions (E&O): Protects against client claims for professional negligence
- Public liability: Protects against third-party injury or property damage claims
- Cyber liability: Protects against data breach and cyber incident costs
- Directors and Officers (D&O): Protects company directors against personal liability claims
- Cargo insurance: For trading companies; covers goods in transit
UAE Insurance Market
- Major UAE insurers: AXA Gulf, RSA, Zurich UAE, Allianz Middle East, Tokio Marine
- Insurance broker: Recommended for complex business insurance; brokers access multiple insurers
- Cost: PI insurance for small professional firm: AED 2,000-10,000/year depending on revenue and activity
Insurance for Specific Free Zone Activities
- DIFC entities: DFSA often requires PI insurance as part of regulated entity licence conditions
- ADGM entities: FSRA may require PI insurance for regulated activities
- Construction/engineering: Professional indemnity with project-specific cover often required by clients