How much cover do you need, and who decides?
The limit of indemnity is the most the insurer pays. You choose it, but a free zone, permit office, landlord or client may set a minimum. DWTC asks for AED 500,000 or AED 1,000,000 for each occurrence depending on headcount, and one landlord's fit-out manual asks contractors for AED 3 million.
What is a limit of indemnity?
It is the most the insurer will pay. Under the Civil Transactions Law, the insurer pays for damage from the insured risk up to the sum insured and no more.1 Anything above the limit is yours to pay.
United Fidelity asks you to state the limit you want for any one claim, any one event and any one period of insurance.2
What is the difference between per occurrence and aggregate?
A per-occurrence limit applies afresh to each incident. An aggregate limit is the total for the whole policy period. DWTC requires the limit to apply to a single occurrence, with no cap on the number of occurrences.3 Dubai South asks fit-out contractors for cover per incident and unlimited in aggregate.4
If a rule says “each occurrence, unlimited in aggregate”, check both words appear on your schedule.
Who sets the minimum?
The free zone, permit office, landlord or client that asks for the policy. The figures they publish differ.
| Who asks | For | Minimum |
|---|---|---|
| DWTC Authority | Licensees with up to 19 employees | AED 500,000 each occurrence |
| DWTC Authority | Licensees with 20 or more employees | AED 1,000,000 each occurrence |
| Central Park Towers, DIFC | Contractors and consultants on retail fit-out | AED 3 million |
| Dubai South | Tenant fit-out contractors (2017 manual) | 125% of the fit-out cost per incident, unlimited in aggregate |
| RAKEZ | Building works | An amount RAKEZ prescribes, each occurrence |
DWTC says it can revise its figures by notice.3 RAKEZ sets the figure itself and does not print it in its rules.5 Work out a figure from these rules with the limit calculator.
Are there smaller limits inside the main one?
Often. GIG Gulf’s Business Secure policy pays for damage to your landlord’s premises only up to 5% of the limit of indemnity, and pays for employees’ and visitors’ personal effects up to AED 25,000 for each claim.6 It also deducts the first AED 2,500 of each property damage claim.6
Ask the insurer to list every sub-limit and excess on the schedule, and compare them with what your lease or contract asks for.
The small print
- DWTC. Rule 10.2 applies to licensees only, not to Business Operating Permit holders. The Authority can ask for a copy of the policy or certificate.3
- Dubai South. The figure comes from version 1.3 of its tenant fit-out manual, dated January 2017. Ask Dubai South for the current manual before you rely on it.4
- Law. Article 963 of the Civil Transactions Law issued by Federal Decree-Law No. 25 of 2025.1
Sources
7
1UAE Legislation, Federal Decree by Law No. (25) of 2025 Promulgating the Civil Transactions Law. Effective 1 Jun 2026. Last checked 12 Nov 2026. Source document: Federal Decree by Law No. (25) of 2025 Promulgating the Civil Transactions Law
2United Fidelity Insurance Company, Liability Insurance. Last checked 12 Nov 2026. Source document: Liability Insurance
3Dubai World Trade Centre Authority, Free Zone Rules and Regulations, version 15. Rule 10.2. Last checked 12 Nov 2026. Source document: Free Zone Rules and Regulations, version 15
4Dubai South, Tenant Fit-Out Manual, version 1.3, January 2017. Section 4.6, Insurance. Last checked 12 Nov 2026. Source document: Tenant Fit-Out Manual, version 1.3
5Ras Al Khaimah Economic Zone (RAKEZ), RAKEZ Authority Operating Rules of 2023. Last checked 12 Nov 2026. Source document: RAKEZ Authority Operating Rules of 2023
6GIG Gulf, Business Secure, Beauty and Personal Care policy handbook. Last checked 12 Nov 2026. Source document: Business Secure, Beauty and Personal Care policy handbook
7Central Park Towers, DIFC, Retail Fitout Manual. Last checked 12 Nov 2026. Source document: Retail Fitout Manual
- Owner
- Publicliabilityinsurance.ae research team
- Last review
- Next review due
- 11 May 2027
- Status
- Published