A Guide to the Insurance Cover Your UAE Small Business Needs

Small businesses can be particularly vulnerable to risks and unpredicted circumstances. Unforeseen events can have an enormous impact on their financial health. This is why you need to consider insurance cover as an essential outgoing for your small business.

Small enterprises who neglect to find the right cover can find themselves completely crippled by insurable risks, such as damages payouts, legal claims against them, or serious damage to property or assets. These costly affairs can sink an otherwise healthy and profitable small business, which is not likely to have the resources available to easily settle claims or make repairs.

When you have the right types of business insurance cover, you can rest well at night in the knowledge that your small business is well-protected. You know that your property and assets are covered, your gross income is protected, and your employees are all taken care of, no matter what curveballs are thrown at you.

Here are four insurance covers that we recommend all small businesses utilize, no matter what you trade in or what your specialization is.

Property All Risk Cover

This will cover your business premises and their contents for a range of unexpected situations. It covers the costs of repairs or replacements to any assets you own, rent or lease.

While policies can vary, these are the kinds of situations that you would be covered for:

  • Weather-related disasters such as flooding or damage from storms or lightning strikes
  • Earthquake damage
  • Fire or explosion
  • Burst water pipes
  • Theft or damage that results from forced-entry onto the property by unwarranted persons
  • Vandalism or damage caused by riots
  • Impact damage from vehicles

This is not an exhaustive list. Most kinds of accidental damage to your business property would be covered by all-risk cover, meaning you can get out with business free from worry.

Business Interruption Cover

With the stress caused by damage to your property or assets, it can be easy to focus only on the costs of repairs and restoration. However, often, these unexpected events can cause normal business operations to stop for some time. This is why you also need business interruption cover.

In the event of a disaster afflicting your business, such as a flood, fire or malicious damage, business interruption cover would protect your business from a temporary loss of income. It’ll allow you to pay your bills as per usual, maintain good relationships with your suppliers, and free up your energy to focus on the repairs needed to get up and running again.

If your premises are severely damaged, then it may be a substantial period of time before your business can be operational again. For some businesses, this interruption cover may mean the difference between staying afloat and going under during this difficult period. 

Public Liability Cover

Every business involves contact with individual third parties outside the business. They could be a customer, client or potential client, supplier, tradesperson or any member of the public that sets foot on your business premises.

In the event of an accident that causes personal injury to a third party (including death) or damage to their property, it is possible that a claim for damages or compensation may be made against your business.

Public liability insurance covers your business against these compensation costs if you or an employee are found to be at fault. It can also cover your business for legal costs relating to defending claims. Public liability insurance covers you whether the incident happens on your premises or you or an employee are working off-site.

Given that all businesses make frequent contact with third parties, this should be considered an essential cover, especially when considering that compensation claims and legal representation can be prohibitively expensive.

Workmen Compensation Cover

Your employees give a lot of time and energy to your business. In fact, they could be seen as your most valuable asset. It is essential that they are properly protected from occupational hazards and are covered for loss of earnings should they be injured at work.

Workmen compensation cover insures your employees against on-the-job injury or diseases caused by their work. It is also designed to provide cover in line with UAE labor laws.

This is the cover typically provided by workmen compensation cover:

  • Compensation paid to a worker’s family in the event of his or her work-related death. Basic cover stipulates a maximum of 24 months’ wages.
  • Compensation for a permanent disability such as loss of sight, paralysis or loss of limbs, also for 24 months’ wages.
  • Compensation for loss of wages for a temporary disability where the employee is unable to work.
  • Medical expenses brought about by a workplace injury or occupational disease.
  • Repatriation expenses following the occupational death of an employee.

In addition, employer liability insurance can cover your business for legal costs and compensation claims should an employee or their family file a suit against your business for wrongful death or injury.

How to find the best business insurance policies

With an online comparison portal, you are able to compare business insurance quotes in one place. A business cover specialist can deliver quotes from different insurance providers so that you are able to easily compare policy terms and get the best premiums for your budget.

To access this information, you’ll need to fill in some basic details about your business, such as the nature of your business activity and the size of the organization, plus the type or types of cover you wish to purchase. You’ll also need to disclose your claims history.

It really is very simple and easy. By using such a service, you can benefit from the expertise of a specialist insurance broker who will help you identify the best solution to suit your business and its insurance needs.

On the same portal, you can get help with other types of insurance your business may need, such as insurance for your commercial vehicle fleet. You can also find policies to protect you and your family, such as health insurance, travel insurance, and life insurance. Whatever cover you need, you can quickly and easily compare quotes and find a solution that is bound to be the very best deal.