What is the Cost of Workers Compensation Insurance?

The cost of this insurance varies based on various factors, including your industry, the level of risk involved, and the number of employees. High-risk sectors like construction and manufacturing typically have higher premiums, while lower-risk industries pay less. Understanding these cost factors can help you choose the right coverage while keeping expenses manageable.

This article explores what affects workers' compensation insurance costs, how premiums are calculated, and key considerations before purchasing a policy.

Factors Affecting Workers' Compensation Insurance Cost in UAE

The cost of a workmen compensation insurance policy varies depending on multiple factors, including —

Size of the Business – Larger businesses with more employees typically pay higher premiums
Industry Risk Level – High-risk industries like construction or manufacturing have higher insurance costs than low-risk sectors like office-based businesses
Number of Employees – The more employees covered under the policy, the higher the premium
Payroll Size – Premiums are often calculated as a percentage of total employee wages
Claims History – Businesses with frequent past claims may pay more for coverage
Level of Coverage – Basic plans cost less, while extended coverage options (such as employer’s liability coverage) increase premiums
Location of Business Activities – Some areas may have higher insurance rates due to risk factors

Example: A construction firm pays more for insurance than an accounting firm due to higher workplace risks.

📝Take a Note

On average, workers' compensation insurance UAE premiums can range from a few thousand dirhams for small businesses to considerably higher amounts for large companies with substantial workforce and operational risks.

How is Workmen’s Compensation Insurance Calculated?

Insurers in the UAE calculate premiums using the following factors —

Factor	Description
Annual Payroll	Total wages paid to employees
Job Classification Codes	Risk level assigned to different job roles
Industry Risk Factor	Risk associated with the business sector
Experience Modification Factor	Adjustments based on safety records and claims history

Many insurers provide a workers' compensation insurance cost calculator that helps businesses obtain accurate estimates for their premiums.

Workmen Compensation Coverage in Various Situations

The worker’s compensation insurance coverage differs from provider to provider. Here are the basic coverage amounts —

Coverage	Details
Medical Expenses	Covers medical costs up to AED 10,000 per person. It is applicable when treatment is provided in UAE government hospitals or clinics.
Repatriation Expenses	Covers transport of deceased workers up to AED 5,000 per person, with higher limits available for an extra fee
Employer’s Liability	Covers claims up to AED 1 million (AED 200,000 per person per occurrence)
Salary Compensation	Up to 24 months of the last basic salary (AED 18,000-AED 35,000)
Legal Claims Coverage	Protection against claims under common or Sharia law (up to AED 200,000 per employee
Occupational Death	If a worker dies due to a workplace accident, the policy provides up to 24 months of salary ranging from AED 10,000 to AED 35,000
Permanent Disability	Compensation is based on a percentage of the total death benefit
Loss of Wages	Employees receive 100% of their salary for the first 6 months and 50% for the next 6 months
Extended Coverage	Some policies offer coverage for accidents outside of work hours

Note: The above coverage amount can vary based on the provider you opt for workmen compensation insurance.

Important Points:

✅Report injuries promptly – Delays can affect compensation eligibility

✅Ensure accurate information – Claims must be supported by proper documentation

✅Consult your employer – For any questions regarding the claims process

What is Not Covered Under Workmen’s Compensation Insurance?

While workmen compensation insurance Dubai provides comprehensive coverage, there are exclusions —

Self-inflicted injuries or deliberate harm caused by employees
Injuries occurring due to an employee's negligence or disregard for safety rules
Accidents while under the influence of alcohol or drugs
Non-work-related injuries, including accidents occurring outside the workplace during non-working hours
Pre-existing health conditions or diseases unrelated to employment
Injuries from riots, wars, terror attacks, or natural disasters
Employees of contractors unless specifically covered under the employer’s policy

How to Buy Workers' Compensation Insurance from Policybazaar.ae?

Purchasing workmen compensation insurance UAE is easy with Policybazaar.ae. You only need to follow these steps —

Visit the website: Go to Policybazaar.ae and then select “Business Insurance” under the “Insurance” drop down
Enter Details: Fill out the necessary details like company name, address, industry type, number of employees, etc.
View and Compare: Get directed to the Quotes page to compare Workmen Compensation Insurance policies from various providers.
Review Policy Terms: Ensure the coverage aligns with business requirements and UAE labour laws and your business needs.
Complete Documentation: Submit necessary business and employee details to complete the purchase.

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Frequently Asked Questions

The documents required for a workmen compensation claim may vary depending on the nature of the claim. The commonly required are claim form, medical records, proof of income loss, and more.

Workmen's Compensation Insurance is designed to protect employers against liabilities for employee injuries suffered during employment as per UAE Labor Law (Chapter 8, Federal Law No. 1980).

Any company or employer, including contractors, who hires workers can purchase a workmen compensation insurance policy. This insurance provides legal liability coverage and helps ease the financial burden on both employers and employees.

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