Do I Need Business Insurance?

Whether in UAE or any part of the world, doing a business is not a five-finger exercise. You’ve got to juggle with a million things, some important and some more important. From choosing between mainland and free zone as your business site to securing a trade licence to handling accounting, bookkeeping & taxation to buying business insurance for your company, every single step is crucial and needs a lot of research work before you take it. We, as a business set-up advisor, have made the life of thousands of aspiring entrepreneurs and seasoned business persons an easy breeze with our expertise in all aspects of business in Dubai, UAE. Today we will share a scoop on business insurance so you know what you don’t know and must know so you don’t have to regret later.

Business Insurance: Importance

A suitable business insurance is something that can’t drop off your radar. One slip and you will end up paying an arm and a leg for a mishap that was written in your stars. Yes, no matter how high-tech the environment is where we are working, we can’t totally deny the fact that accidents or mishappenings don’t need an invitation and can knock on your door any time. Thankfully, there exists a guard named “business insurance” that not only keeps you from forking out on these unforeseen out-of-pocket expenses but also saves your valuable time and money while keeping you and your employees stress-free. Business insurance indeed does more than covering for expenses, it builds trust and confidence in everyone interested in your business. Besides safeguarding your business against the potential costs of claims, damages and lawsuits, business insurance strengthens your credibility amongst stakeholders, clients, customers and employees. Let’s get acquainted with some more reasons that make business insurance coverage a must-have.

Business Insurance: Reasons to have one

Law mandates business insurance: Small business insurance is required by law in the UAE regardless of the company type. However, if you see the insurance as a trivial outlay, you must know that in the absence of the right corporate insurance, your business may have to suffer financial losses in the event of:

  • Lawsuit filed by a customer/visitor after getting hurt at your business site
  • Fire causing building or inventory damages
  • Pilferages. Case in point: A computer that has sensitive information about your business and customers is stolen

With business insurance workers are protected too: Depending on the nature of your business or the jurisdiction your company is registered under, you might be required to buy a business insurance policy that covers your employees. For instance, workmen compensation insurance covers expenses that might crop up due to a sudden accident occured within the premises resulting in serious injuries or illnesses. As employees’ safety is the employers’ responsibility! The employer is accountable if anyone gets injured while working for them during the work shift according to the Ministry of Labour Law in UAE. It’s a wise decision to go for a worker compensation insurance plan that covers at least medical care, missed wages, permanent disability and funeral expenses. Be informed that workers’ compensation provides different protection than unemployment insurance programs.

Business insurance also provides protection to your customers

Just like employees, your customers can also be protected by business insurance. A Business Owner’s Policy (BOP) can help you cover your customers. These BOP policies fuse business property and business liability coverage into one to help you shield your business from – property damage, personal & advertising injury, bodily injury and product liability. For instance, if something falls off a shelf of your supermarket on a customer’s head causing injury that calls for a doctor, or someone falls down due to wet floor and breaks their leg and needs an immediate medical treatment, your BOP can help shell out for their medical costs. Furthermore, you also can opt for data breach insurance if you need to secure your business and customers in the event of any security breach. This insurance type covers costs pertaining to identity protection solutions, public relations, legal fees and liability.

Business insurance helps establishing credibility

Your business runs on trust. Andsmart business entrepreneurs or business persons can go to any lengths to build and maintain their business credibility in the market. Having the right business insurance coverage helps you win the confidence of your customers and contractors in you as they feel protected when dealing with you. They understand that you are equipped to mitigate risks, no matter what happens.

Several contracts may demand business insurance

Every now and then you, as a business owner, might need to get into some contract when doing business in Dubai or anywhere across the world. Renting a property, borrowing money to finance goods, loan agreements, clients’ agreements… are some of the instances where insurance protection becomes a necessity. So, it’s paramount to be au courant with those contract-related requirements and buy the business insurance coverage that squarely fits into them.

Business insurance gives wing to employee recruitment and retention

Just take-home pay doesn’t suffice when employees seek jobs in expensive countries like Dubai. They prefer to work with those employers who provide perks and benefits other than a fixed salary. And one of them is life and health insurance. If not for the right medical or health insurance, businesses are often left out in the cold by the best human assets.

Business insurance keeps management from harm

It’s important to protect your company’s key members that are more exposed to risks. Management Liability Insurance (aka “Executive Liability Insurance”) covers costly lawsuits and other risks confronted by the owner, CEO, directors, officers, managers and business entities that originate from governance, finance, benefits, and management activities. Management Liability Insurance can help secure those who are running non-profit organizations and publicly traded companies. You may also choose to add this type of insurance to your existing BOP policy if this option is available.

Business insurance shelters your company from natural disasters

You might want to protect your business from various natural disasters officially-declared by a government agency, like flood, forest or brush fire, earthquake, tsunami, volcanic action or eruption, a named hurricane, typhoon or cyclone, and/or any natural disaster, etc. particularly if your business location is prone to natural disasters and other hazards. This insurance has you covered in case a natural catastrophe ruins or affects your business’ assets and possessions. Insurance companies in Dubai also offer flood insurance to help businesses protect themselves from damages caused by flood water.

Business Insurance: Types

As far as options are concerned, you are spoiled! There are myriad types of business insurance in Dubai, UAE available at your disposal but singling the right one out that checks all the boxes can be a bit tricky.

  • A Business Owners Policy
  • Business Liability Insurance
  • Business Interruption Insurance
  • Commercial Property Insurance
  • Commercial Auto Insurance
  • Commercial Umbrella Insurance
  • Cyber Liability Insurance
  • Directors and Officers (D&O) Insurance
  • Errors & Omissions Insurance
  • Inland Marine Insurance
  • Product Liability Insurance
  • Technology Errors and Omissions Coverage
  • Workers Compensation Insurance

Small or big, businesses need to be insured because no business in the world is 100% insulated from risks. Business insurance helps by covering the costs associated with property damage and liability claims. Without business insurance, business owners may have to pay out-of-pocket for costly damages and legal claims against their company.

How can we help?

True business success demands an exhilarating mix of taking risks in some areas and mitigating risks. Your business insurance is your risk-buster, bringing you a peace of mind! The insurance type you choose for your organisation can make or break your business. Therefore, it is vitally important that you pick your business insurance mindfully. When you are setting up a business in Dubai or any other emirate of UAE, you need right guidance at every step of your way. And this is where the need of a business specialist arises. From incorporating your firm from scratch to managing your business accounts and taxation to understanding your business needs and working around them to find the best solution, your business formation consultant is by your side. With so many business insurance companies offering various business insurance plans in the market, it is easy to get lost in the sea of business insurance options. Most businesses approach an insurance broker to figure out the most suitable business insurance for their company. However, the smart entrepreneurs contact prestigious business set-up advisors like Adam Global to seek advice on the business insurance. You may get in touch with us, in case you need any sort of assistance in connection with your business.

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