UAE Free Zone Company Insurance Guide 2026
UAE free zone companies face various business risks that can be mitigated through insurance. While most business insurance is optional in UAE, some types are legally required. This guide covers mandatory and recommended insurance for UAE free zone companies in 2026.
Legally Required Insurance for UAE Free Zone Companies
- Employee health insurance: mandatory for all UAE employees (all emirates); Dubai Health Authority/HAAD regulations
- Worker’s compensation: covered under UAE labour law; companies are liable for work-related injuries without separate policy requirement in most cases
- Vehicle insurance: mandatory for company-owned vehicles
- Professional indemnity: required by specific regulated professions (lawyers, accountants, healthcare professionals, financial advisers)
- Contractors all-risk: required for construction projects (typically by project contracts, not law)
Employee Health Insurance in UAE
All UAE employees must be provided health insurance by their employer. Coverage levels:
- Dubai: Essential Benefits Plan (EBP) minimum for lower-paid employees; comprehensive plans for others
- Abu Dhabi: Daman government health insurance or compatible private plan
- Other emirates: Thiqa (government) or private insurance
Cost: AED 600–3,000 per employee per year depending on coverage level and insurer. Employee dependants (family): employee-paid or employer-paid; not legally required to be employer-provided but common for skilled workers.
Professional Indemnity Insurance for Free Zone Consultants
Professional indemnity (PI) insurance (also called Errors & Omissions) covers claims from clients for professional mistakes, negligence, or failure to deliver services as promised. Strongly recommended for: consultants, IT service providers, accountants, lawyers, architects, engineers, and other service professionals. Cost: AED 2,000–10,000/year for SME professional services firms. Required by some UAE regulated professions and some client contracts.
General Liability Insurance
Covers claims for bodily injury or property damage caused by your company’s operations. Relevant for: companies with physical premises, products liability, or public interactions. Cost: AED 1,500–5,000/year for SMEs. Required by some UAE free zone authorities as a condition of operating physical space within the zone.
UAE Business Insurance Providers
- AXA UAE: comprehensive business insurance range; strong in professional indemnity
- AIG UAE: professional and management liability; good for larger companies
- RSA UAE: SME business insurance; general commercial lines
- Orient Insurance: UAE-based; general commercial lines for SMEs
- ADNIC (Abu Dhabi National Insurance): government-linked; strong in Abu Dhabi