Property Insurance for UAE Businesses

It isn't required by law, but it's often required in practice. Landlords frequently require tenants to insure their fit-out and contents, and banks require property insurance on any premises or assets they finance. Even when optional, it protects a business from losses that could be impossible to recover from.

Fire & Allied Perils only covers the events listed in the policy, such as fire, lightning, explosion, storm and flood. Property All Risks covers physical loss or damage from any cause unless it's specifically excluded, so it gives wider protection. All Risks usually costs more, but leaves fewer gaps, which is why most of our business clients choose Property All Risks.

Business interruption covers the income you lose and extra costs you face if insured damage forces your business to close or slow down, such as after a fire. Property insurance pays to repair the building; business interruption keeps the business running while it's repaired. Any business that couldn't easily survive months of lost income should consider it.

The sum insured should reflect the full cost of rebuilding or replacing your property and contents today, not what you originally paid. If you insure for less, most policies apply an "average" clause, meaning the insurer reduces every claim in proportion to the shortfall, even small ones. Reviewing values every year avoids this.

Yes, if they're included in the sum insured. Stock can be insured at a fixed value or on a declaration basis, where you report stock levels regularly and pay premium on actual values. This suits businesses whose stock levels change through the year.

Usually, yes. Storm and flood are covered under Fire & Allied Perils and normally under Property All Risks. However, since the April 2024 floods in the UAE, insurers have tightened their terms for "Act of God" perils such as storm and flood. Common changes include higher deductibles for storm and flood claims; sub-limits, for example cover for external fixtures and fittings against storm or flood damage limited to 10% of the location's sum insured, up to a maximum of AED 250,000 for any one event and in total; and exclusions for temporary or outdoor structures such as car park sheds, fabric canopies, tents, umbrellas, caravans, porta cabins, landscaping, plants and trees. Always check these terms in your policy. We highlight them when comparing quotes.

A deductible (also called an excess) is the amount you pay towards each claim before the insurer pays the rest. For example, with an AED 10,000 deductible, a AED 60,000 claim means you pay AED 10,000 and the insurer pays AED 50,000. Choosing a higher deductible usually lowers your premium. Deductibles for storm and flood are often higher than for other claims.

Usually the landlord insures the building structure, while the tenant insures its own fit-out, equipment, stock and contents. Your lease will set out exactly who is responsible, so check it before arranging cover.

Insurers look at the sum insured, the type of building and how it's built, what the premises are used for, fire protection and security measures, the location, and your claims history. Good fire safety measures can noticeably reduce the premium.