A lot of time, effort and resources have been invested into setting up your company in Dubai. So it is vital you ensure your business is safe and secure and your assets protected.
Commercial insurance covers a range of policies such as public liability insurance, fire, employers’ liability and group health insurance. Depending on the nature of your business, some of these elements may be a legal requirement in the UAE and, for peace of mind; they should all be worth considering. But be savvy as policies and providers differ hugely. To get the best deal at the best price you need to shop around.
So let’s take a look at some of those policies in more detail.
Contents or Assets Insurance
This is advisable if your business relies on expensive equipment and stock and this policy covers them against fire and water damage, burglary and theft. You may want to choose new-for-old cover which meets the cost of replacing items, while indemnity insurance will deduct the cost of wear and tear so you will be left in the same position before the loss was incurred.
Public Liability Insurance
This is compulsory in the UAE for anyone wanting to run a business. If a third party, such as a customer or member of the public gets injured or their property is damaged because of your business, you could be liable for costly compensation awards. Added to this are hefty legal defence costs to take into account if you lose a case.
Employers’ Liability insurance
This is another legally-required policy in the UAE which protects your employee and your business in the event of someone getting injured or ill as a result of their work. Employers have a duty of care and responsibility for their employees and this policy should be taken with a Workmen Compensation policy for maximum protection. Make sure any policy also covers legal costs and expenses.
Group Health Insurance
Many employers in the UAE who employ expatriate staff have a legal responsibility to arrange medical expenses insurance for them. A Group Health Insurance policy can provide medical insurance to a group of employees of three people or more at a discounted rate. This is possible because the risk can be spread among a group of people.
Professional Indemnity Insurance
If you offer professional advice and expertise to other businesses and a client believes you have been negligent and cost them money, Professional Indemnity Insurance will cover you in such circumstances and the defence costs arising from them. It could be due to a breach of professional duty, a negligent mis-statement, unintentional libel, slander of defamation or unintentional infringement of intellectual rights.
Top Tips to Consider
There are a number of questions an insurance provider will put to you when taking out commercial insurance such as the size of turnover, the number of employees, any previous claims you may have had in the past, your health and safety record and the level of exposure you have with customers, clients and the public. All these issues will determine the level of risk your business presents to the insurer. Do then bear in mind the following:
- Combining different policies such as Employers Liability and Workmen Compensation Policy could save you money as well as being more convenient
- When comparing quotes, the right policy isn’t always the cheapest
- Try speaking to an independent broker rather than relying on a search engine to get you the best deal
De Hoon & Partners (DHP) provides affordable international tax and legal advice on how to set up a business in Dubai and how to fully protect your business. Contact us here for more information and advice about setting up a business in Dubai.