UAE Free Zone Business Insurance Guide 2026
UAE businesses are required to hold certain insurance policies by law, and additional coverage is strongly recommended for professional and commercial risk management. This guide covers mandatory and recommended insurance for UAE free zone companies in 2026.
In this guide:
Mandatory Insurance for UAE Free Zone Companies
- Health insurance for employees: mandatory under Dubai Health Authority (DHA) for Dubai-based employees; Abu Dhabi DOH for Abu Dhabi employees; HAAD employer health insurance scheme
- Worker compensation insurance: mandatory for employees under UAE Labour Law
- Motor insurance: mandatory for any company-owned vehicles (third-party minimum)
- Professional indemnity insurance: required by some free zones (e.g., DIFC) for regulated financial services
Health Insurance Requirements by Emirate
- Dubai: essential benefits plan (EBP) minimum for low-wage workers; enhanced plans for higher-salary employees; DHA mandates coverage
- Abu Dhabi: all Abu Dhabi employees must have health insurance from first day of employment
- Other emirates: Sharjah, RAK, Ajman, UAQ, Fujairah — federal health insurance law pending full implementation; Dubai and Abu Dhabi standards most stringent
Cost: AED 600–2,000 per employee per year for basic health insurance; AED 3,000–8,000 for comprehensive plans.
Recommended Business Insurance for Free Zone Companies
- Professional Indemnity (PI): for consultants, advisers, IT services — covers claims for professional negligence. AED 5,000–20,000/year.
- Commercial General Liability: protects against third-party injury/property damage claims. AED 3,000–10,000/year.
- Cyber Liability Insurance: increasingly important for businesses handling customer data. AED 5,000–30,000/year.
- Key Person Insurance: protects the business if a key shareholder or employee dies or is incapacitated.
- Business Interruption Insurance: covers lost revenue during forced closure (pandemic, fire, etc.).
UAE Insurance Regulatory Authority (IRA)
The UAE Insurance Authority (now merged into the Central Bank of UAE) regulates all insurance providers. Only CBUAE-licensed insurers may issue UAE business insurance. Major UAE commercial insurers: AXA Gulf, RSA Insurance, Oman Insurance, Orient Insurance, Noor Takaful (Islamic insurance).