UAE free zone companies are not legally required to purchase most types of business insurance, with the exception of employee health insurance. However, certain clients, banks, and sectors require specific insurance coverage as a condition of doing business.
Mandatory UAE Business Insurance
Employee Health Insurance is mandatory for all employees sponsored by a UAE company. In Dubai, all employees and their dependants must have DHA-compliant health insurance provided by the employer. In Abu Dhabi, HAAD-compliant health insurance is mandatory. The minimum cost is AED 750–1,200/year per employee for basic plans.
Workers’ Compensation is required for companies where employees perform physical/manual work. Free zone authorities often require this as part of the employee visa process.
Recommended UAE Business Insurance Products
| Insurance Type | Who Needs It | Typical Annual Cost |
|---|---|---|
| Professional Indemnity (PI) | Consultants, advisors, contractors | AED 3,000–15,000 |
| Public Liability | Companies with UAE office/client visits | AED 2,000–8,000 |
| Product Liability | Manufacturers, importers, F&B | AED 3,000–20,000 |
| Cyber Insurance | Tech companies, fintech, data processors | AED 5,000–25,000 |
| Trade Credit Insurance | B2B companies with credit exposure | 0.3–0.8% of insured turnover |
| Key Man Insurance | SMEs with critical founder/executive | Variable (life-based) |
Major Insurance Providers in UAE
Prominent UAE business insurance providers include AXA Gulf, Zurich Insurance UAE, Al Sagr National Insurance, Oman Insurance (now Sukoon), RSA Insurance, and Abu Dhabi National Insurance (ADNIC). Compare quotes through brokers like Howden UAE, Marsh UAE, or Aon UAE for the best rates on complex coverage.