You need to think about a lot of things before you can successfully run a business in the United Arab Emirates. Not only do you need to have a brand that works, but you also need to follow regulations imposed by the government on various aspects of the business.
Some of these policies include insurance. In Dubai, businessmen are obligated by law to provide their employees with reliable healthcare insurance regulated by the Dubai Health Authority (DHA). Similar rules also apply to foreign workers who hold Dubai working visas.
But legal obligations aside, there are several other reasons why you should consider getting your business insured. If you want to learn more, here are the top six reasons why you should get business insurance for your company in the UAE:
1. Secure Your Company Against Liabilities
Generally, business insurances provide protection against unexpected costs related to liability claims and property damage. These assets are the usual subjects of business insurance.
Asset insurance comes in many different forms. This ranges from basic property insurances that cover commercial structures and everything inside them to business interruption insurance that takes care of the cost of stalled business operations. In some cases, companies may also be required to get industry-specific coverage, such as marine or fleet insurance for those engaging in maritime trading.
While they may apply to various situations, all these insurances provide security for your company against liabilities. Liability insurance generally falls under three categories, namely:
- Public liability insurance – This liability insurance involves securing the business against third-party claims. This includes physical injury or loss of life and property.
- Product liability insurance – This category of liability insurance protects the company from claims related to malfunctioning or unsafe products.
- Professional indemnity insurance – This insurance secures business owners against claims of professional negligence.
2. Keep Your Business Running
Companies turn up profit from smoothly running operations. But what if a natural disaster or anything beyond the business owner’s control occurs and halts business operations?
While you may get property insurance for property damages or losses, you still need to find a way to protect your company against lost income due to impeded operations. This is where business interruption insurance comes in.
As the name implies, this form of insurance covers costs that may be incurred or lost in case the insured business experiences an unexpected interruption of commercial operations.
Aside from natural disasters, this type of insurance can also cover the interruption of business operations due to destruction, damage, or loss of property. In essence, it compensates the business owner for the cost of recovery, lost revenue, and damaged or stolen tools, machinery, and stocks.
3. Reduce Damage from Lawsuits
As much as you would want to please everybody, there will always be the risk that your company would be subjected to a lawsuit. Without insurance, this can be debilitating for any business and – in worse cases – may cause it to fold.
Protect yourself and your company from broken contracts, accidents, or even a disgruntled employee by acquiring business insurance. This way, you can still keep your company running and maintain peace of mind that you’ll still be in business at the end of the day.
4. Add Credibility to the Company
Although this may not be very obvious, business insurance also adds to your company’s credibility. Just imagine potential clients looking into your company background and finding that you’re insured. They’ll definitely think you’re a safe choice since you have a way to compensate them should anything go wrong during your transactions.
This is also the very reason why many home service companies add the statement “licensed, bonded, and insured” to their taglines and ads. Not only does doing this inform customers of your insurance, but it also makes your company look more trustworthy.
5. Attract and Keep Good Workers
Aside from attracting potential customers, having business insurance can also help you appeal to the best employees. Moreover, aside from being mandated by UAE law, actually seeing the insurance coverages in the company employment offer will make good workers want to join your team. They could also potentially become long-term partners who will help your business succeed.
Keep in mind that, next to salary, insurance, and other benefit packages are what make great talent want to stay in a company. These perks can range from disability, health, and life insurance to long-term and social security benefits.
6. Follow the Law
Under Emirati laws, companies need to have insurance for the sake of their employees, customers, and the business itself. Not only are you required to provide workman’s compensation insurance for your employees, but you also need certain additional coverages for your clients.
Aside from a professional indemnity policy, companies based in the UAE may be required to get other forms of insurances according to the type of business you’re running. This may include:
- Property insurance – As the name implies, this insurance coverage secures the business’ building and its contents. The latter may include equipment, machinery, stocks, and others.
- Premises liability – Although public liability policies may already cover this, certain businesses may need to have additional premises liability. This will protect them from third-party claims of injury incurred within the business premises. Among the scenarios this policy may cover include tripping from poor lighting, wet or uneven ground, and insufficient security, among others.
- Marine insurance – Also called fleet insurance, this type of policy covers marine vessels. Unlike cargo insurance which insures the actual property being transported, marine insurance policies cover the vessel itself against loss or damage.
Get Insured to Protect Your Business
Insurance exists so that you can prepare for any unexpected occurrence that may hurt your business. These products not only provide security but also peace of mind, especially for business owners who invest a significant amount of time, money, and effort into launching a company in the UAE.