How to Get Insurance for a Small Business

Starting a business is not all about profits. You need to factor in the risk involved in its set-up and operations. Thus, owners of small businesses require insurance. Think of a small business insurance package as a financial safety net that protects against financial losses/damages, and liabilities. Choosing the right coverage not only secures your business but also helps ensure its long-term stability and growth. Read on to understand how to get the right small business insurance.

What Insurance is Required for Small Businesses in the UAE?

The type of business you run and the degree of risk it carries determine the kind of insurance coverage you need. You can customise the insurance you need in an SME Insurance Package according to your industry, business nature, number of employees, operations, etc. Here is the list of some common types of insurance required for small businesses in the UAE:

1-) Public Liability

This insurance protects businesses against third-party claims for injuries or property damage on organisational premises. Typically, it is part of a comprehensive general liability policy, covering legal expenses, accidental damage, and compensation for other covered losses and ensuring compliance and financial protection.

2-) Workmen’s Compensation

Worker compensation insurance coverage is mandatory in the UAE, and it financially protects employees by covering workplace injuries, accidents, or illnesses. It includes medical costs, lost wages, and legal liabilities, ensuring employer compliance with UAE labour laws.

3-) Property All Risk

This coverage is essential for small businesses as it protects against damage or loss to physical assets due to unforeseen circumstances. The tangible assets include buildings, equipment, and inventory. It gives you financial protection and ensures the continuity of your business.

4-) Business Interruption

Business interruption due to any reason can have a serious financial impact on small businesses. With this insurance coverage, companies recover from unforeseen events like fire, flood, or equipment failure. It compensates for lost income and operating expenses, allowing businesses to maintain stability during downtime.

Note - Generally, these policies are sold under an SME insurance package. Apart from them, there are some other types of insurance required for small businesses.

• Machinery Breakdown - It covers the repair or replacement costs of essential machines or equipment that suddenly fail. It protects manufacturing and industrial businesses from operational losses caused by mechanical or electrical breakdowns.
• Professional Indemnity Insurance - It is essential for consultancy businesses to protect against negligence or errors.
• Marine & Aviation Insurance - This insurance product covers the movement of goods within and across international borders in vessels and aircraft.
• Cyber Insurance - With this insurance cover, you are protected against data breaches, cyberattacks, and related liabilities.
• Health and Employee Benefits Insurance - It is mandatory under the UAE Law. This insurance provides quality healthcare to employees and their families (if applicable), promoting employee retention and overall well-being.
• Commercial Auto Insurance - It covers work vehicles, such as cars and trucks, along with their drivers, from financial losses resulting from accidents.

Why Do Small Businesses Require Insurance?

If you are a startup or a small business, there are many reasons to choose small business insurance in the UAE:

• It’s essential to meet the legal requirements, as certain policies are mandatory across the UAE or sector-specific.
• With the small business insurance coverage, companies or organisations can ensure employees’ protection.
• Financial security is a significant concern for small and medium-sized enterprises. With the right policy, you can get coverage for unexpected losses that could disrupt or shut down business operations.
• You can safeguard your business against accidents, property damage, or third-party claims.
• Corporate insurance, such as business interruption insurance, ensures operations recover quickly after unforeseen events.
• Tailored policies protect industry-specific risks such as cyberattacks, equipment failure, or construction damages.
• It enhances business credibility in the marketplace, as clients or contractors trust a business with a comprehensive insurance plan.
• Many policies in the UAE safeguard your business against natural disasters, like floods, earthquakes, and more.

How to Get Insurance for a Small Business?

By keeping the following things in mind, you can get the right insurance for a small business:

Evaluate Business Risks

Before purchasing a business insurance policy, conduct a thorough risk assessment for your business. It helps you identify the right coverage, avoid unnecessary policies, and save on costs while ensuring adequate protection.

For example, businesses in high-risk industries such as construction, manufacturing, or fieldwork should consider policies like Contractors’ All Risk Insurance, Machinery Breakdown, and other specialised coverages. 

On the other hand, businesses operating in technology, professional services, or other service-based industries may require General Liability Insurance, Cybersecurity Insurance, and similar protections.

Understand Legal Requirements

In the UAE, certain insurance policies are legally mandatory for businesses, regardless of their size. Companies are required to provide coverages such as group health insurance for employees and workers’ compensation insurance to protect against workplace injuries. Therefore, get these coverages separately if they are excluded from the SME insurance package.

Furthermore, depending on the location, industry and business activities, you may need to buy additional compulsory policies to ensure compliance and employee well-being.

Choose the Right SME Package Insurance

Once you have determined the types of coverage your business needs, the next step is to obtain a quote from a reliable provider. Conduct research and find the best insurers by reviewing their services and claim assistance.

You can do a thorough comparison on Policybazaar.ae for the right SME package insurance.

After finding the right one, share your business details with them, like business type, number of employees, equipment, location, and more. They will suggest the best packages as per your business and requirements.

Cost of Small Business Insurance

Indeed, small businesses need to consider the cost of business coverages. However, don’t let the policy premium single-handedly affect your choice. Premiums are calculated based on multiple factors, like coverage, features, and benefits.

Where to Get the Right Insurance for Small Businesses? 

Policybazaar.ae is the ideal place where you can find the right insurance required for small businesses in the UAE. This online platform not only lets you buy the right coverage but also assists you in several ways. Follow the simple steps to get the best coverage for your business in the UAE:

• Visit the home page
• Click on the ‘Business Insurance’ tab
• Explore various coverages and choose the ideal ones. You can select ‘SME Package Insurance’ for comprehensive protection
• Fill out the necessary details on the lead form, such as your number, email address, number of employees, and more
• Submit the form and get a call from one of our experts to guide you further in the purchasing process

Summing Up 

Small and medium-sized businesses often face high risks during their growth stages and may not always be equipped to handle unexpected financial losses or damages. This makes having the right business insurance policy essential. From legally required coverages to additional protections, business insurance shields your company from unforeseen events, like third-party liability, accidents, business interruption, and so on. More than just a safeguard, it should be seen as a long-term investment, helping you protect operations, employees, and assets while enhancing your business’s stability, credibility, and resilience for sustainable growth.

Frequently Asked Questions