What insurance do fit-out and building works need?
In Dubai the contractor needs a policy covering the works and third-party liability to get the permit for construction, alterations of 300 sq m or more, demolition or shoring. Landlords add their own minimums, such as AED 3 million at Central Park Towers and 125% of the fit-out cost at Dubai South.
What insurance does a fit-out need in Dubai?
If the works need a construction permit, the contractor must submit a policy covering the works and civil liability towards third parties.1 The Dubai Development Authority applies this to building construction, modifications and additions of 300 sq m or more, demolition and shoring.2 Your landlord may ask for more.
| Authority or landlord | Insurance asked for | Minimum | Document date |
|---|---|---|---|
| Dubai Municipality or the permit authority | Contractor’s policy covering the works and third-party liability | Template set by Dubai Municipality | Resolution 28 of 2022 |
| RAKEZ | Construction insurance and public and third party liability | Set by RAKEZ | Operating Rules of 2023 |
| Central Park Towers, DIFC | Workmen’s compensation and public risk or third party insurance for contractors and consultants | AED 3 million | Uploaded January 2024 |
| Dubai South | Contractors’ all risks and public liability, and workers’ compensation | 125% of the fit-out cost per incident; AED 500,000 per person for workers’ compensation | January 2017 |
How long must the contractor’s cover last?
For construction, alterations and additions under a Dubai permit, from the permit date to one year after the completion certificate. For demolition and shoring, to the completion certificate.2 The policy cannot be cancelled or changed during its validity without approval.1 In RAKEZ, liability cover runs for 3 years from the Operation Fitness Certificate.3
What do landlords ask for?
Their own minimums, set in their fit-out manuals. Central Park Towers requires all contractors and consultants on retail fit-out to hold workmen’s compensation and public risk or third party insurance of at least AED 3 million.4 Its permit-to-work form also asks the contractor to confirm it holds adequate insurance for damage to the premises, equipment and third-party liability.4
Dubai South’s 2017 manual asks fit-out contractors for contractors’ all risks and public liability cover of at least 125% of the fit-out cost for any one incident, unlimited in aggregate, and workers’ compensation of at least AED 500,000 per person. Tenants must make sure the contractor gives Dubai South evidence of the policies.5
Work out a 125% figure with the limit calculator.
Who holds the policy, you or the contractor?
The rules above put it on the contractor. Resolution 28 of 2022 requires the contractor to submit the policy to get the permit.1 Dubai South addresses its requirements to contractors, with the tenant responsible for making sure they are met.5 Central Park Towers makes the tenant’s fit-out contractor responsible for meeting its insurance requirements.4
Ask your landlord for its current fit-out manual before you appoint a contractor, and put its insurance clause into the contract.
The small print
- Resolution 28 of 2022 applies to all of Dubai, including special development zones and free zones such as the DIFC. The policy replaces security deposits and financial guarantees for the permit.1
- RAKEZ also requires the works, plant and materials to be insured for full reinstatement value plus 10% until the Operation Fitness Certificate, and contents insurance after it.3
- Dubai South. The manual quoted is version 1.3, dated January 2017. Ask Dubai South whether a newer version applies.5
Sources
5
1Government of Dubai, Supreme Legislation Committee, Executive Council Resolution No. (28) of 2022 Concerning the Insurance Policy Required for Issuing Permits for Construction Works. Last checked 12 Nov 2026. Source document: Executive Council Resolution No. (28) of 2022 Concerning the Insurance Policy Required for Issuing Permits for Construction Works
2Dubai Development Authority, Circular 420, Permit Insurance for Construction Works in the Emirate of Dubai, Dated 31 August 2022. Last checked 12 Nov 2026. Source document: Circular 420, Permit Insurance for Construction Works in the Emirate of Dubai
3Ras Al Khaimah Economic Zone (RAKEZ), RAKEZ Authority Operating Rules of 2023. Last checked 12 Nov 2026. Source document: RAKEZ Authority Operating Rules of 2023
4Central Park Towers, DIFC, Retail Fitout Manual. Last checked 12 Nov 2026. Source document: Retail Fitout Manual
5Dubai South, Tenant Fit-Out Manual, version 1.3, January 2017. Section 4.6. Last checked 12 Nov 2026. Source document: Tenant Fit-Out Manual, version 1.3
- Owner
- Publicliabilityinsurance.ae research team
- Last review
- Next review due
- 11 May 2027
- Status
- Published