All about Business Insurance in the UAE

Business insurance is the insurance coverage for the business which is provided to protect you against unforeseen events and losses. Business insurance is purchased to get protection against damages to the property, profit protection, legal liabilities, risks which are associated with employees and many others. In case of any mishappening, the insurance will protect the business and provide the maximum benefit to the business. 

For better understanding, the concept is explained here with an example. 

Suppose if a business is sued for paying amounts for medical expenses that are related to the injury which may be due to the hazard or work-related accidents. If the business has an insurance policy then the expenses will be cleared off from the policy. The business can shield itself and avoid the expenses which are related to the incident. 

Based on the risk associated with the business, the business entrepreneur can select risk levels and this determines the policy amount payables and protects the company from the higher risk. The insurance broker provides various options for the business entrepreneur to select insurance policies. Insurance brokerage facilities are useful for those who do not have any understanding of business insurance in the UAE. 

Why is Business Insurance required?

Business is a profession that makes you keep occupied and that produces the income. Operating a professional business is a challenging task that requires skill and knowledge. Business responsibilities have risks which if overcome then yields good returns. Every business has its own assets, equipment, inventory, machinery and other properties. These assets also get associated with the risk of loss. In different situations, a business is operated some are hazardous types of business and some are non-hazardous types of business. For any kind of business, insurance is required for the perpetual pro-longevity and success of entrepreneurship. Business insurance is required because it gives complete protection to business in different legal situations, protects against natural calamities, enables protection against losses and many other situations. If you get insurance for your business it helps you to receive compensation for the losses. You can compare and customize the offers by the leading companies in Dubai and UAE. 

Business insurance products 

Risks in business are of different forms which have a direct effect on the financial stability of the business. Insurance companies provide the insurance facility to different companies. The following are business insurance products.

  1. Public liability insurance
  2. Professional indemnity insurance
  3. Workmanship compensation insurance
  4. Marine insurance
  5. Medical malpractice
  6. Motor fleet insurance
  7. Property and business interruption insurance
  8. Contractors all risk
  9. Contractors P/M insurance

1. Public Liability Insurance

In business operations, if any malpractice, negligence or any accident happens legal liability can cause an expensive court battle which becomes difficult to handle. Public liability insurance provides full security to the business by giving indemnity to third party liabilities. The compensation pays and the legal actions are done by the third parties against your business. 

2. Professional indemnity insurance

Professional indemnity insurance provides protection against negligent claims by safeguarding the business interest. If any claims arise by mistake, omissions, errors or financial loss which may affect the third party then professional indemnity ainsurance ensures business security. The insurance company incurs the cost of legal expenses, it defends the claims and protects the business from losses that result from the claims of the third parties. 

3. Workmanship compensation insurance

Employees are the assets for the business entrepreneurs because the survival and success of the business are dependent on them. The productivity and appreciation of employees can keep them engaged in the business. Workman compensation provides the insurance coverage to the employees providing them medical allowances, financial protection in case of disability or death which results during the business operations and performing duties. It includes compensation which is given to employees for death or any disasters during the business course.

Click here for Workers Compensation Insurance

4. Marine business insurance

If the business is operated largely on the marine and ships then this kind of business insurance will be greatly helpful for the business owners. Marine business insurance offers protection for losses or damages of cargo, terminals, vessels, ships and other transportation where a business or the third party property is being in transit or purchased or withheld. Marine insurance provides insurance coverage which covers the risks of marine accidents. 

5. Medical malpractice

For any damages which are caused to the patient by the professionals, the medical malpractice insurance provides financial security that protects the interest of professionals from judicial proceedings. This liability may be caused by the negligence or mistakes of the professional person. All expenses are paid for incidents such as physical injuries, illness or disability or death of the parties involved in the incident. 

6. Motor fleet insurance

Motor insurance is given for business for providing coverage for all motor vehicles with a single policy. This coverage is to provide protection for damages to motor-vehicles which may be caused due to fire, disasters, burglary or accidents. It provides protection against judicial proceedings that reduces the risk of heavy losses. Some insurance companies also provide protection against medical expenses which may occur because of accidents.  

7. Property and business interruption insurance

This insurance helps in the business to recover income which is lost and it also pays for the extra expenses. It covers the expenses such as legal fee, commission fee, predefined expenses and other expenses. It covers the expected profits and it helps in recovering the income which is lost.

Click here for Public liability Insurance

8. Contractors all risk

It is non-standard insurance specially designed for construction business. It provides coverage for third party losses or damages that claim losses be which occurred cause of the construction process work. The contractors all risk insurance provides protection to the construction companies and their projects. 

9. Contractors P/M Insurance

Plant and Machinery insurance policy gives protection to business from any losses to the assets. The protection can be for damages or losses to machinery, loading and unloading equipment, excavators and others. It gives complete protection for plant and machinery at the site or anywhere it is insured. 

Tips for taking business insurance

  1. Take the insurance policy and stay insured 
  2. Always include health insurance in your insurance policy
  3. Get your liability insurance such as product liability, public liability insurance and professional indemnity insurance.
  4. Workman compensation insurance is a must-have 
  5. If your business is into motor vehicles get motor insurance
  6. Put all your insurance policies under one policy and one insurance provider

Meet the author
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Vinay Kumar Goguru is a finance professional with more than 8 years of diverse experience as a researcher, instructor and Industry work experience with both public and private entities. Prior to MyMoneySouq, he spent 6 years in Berkadia, It’s a commercial mortgage banking company. He has a “Doctoral Degree in Commerce” and two master’s degrees with a specialization in Finance, one as Master of Commerce and other as Master of Business Administration. He has written several articles on personal finance, published by different International journals. He loves traveling, reading and writing is his passion. He has a dream of writing a book on his favorite finance topics.






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