Ask your contractor for a current certificate for contractors' all risks and third-party liability cover in the company's licensed name. Dubai requires contractors to hold such a policy to get a permit for new buildings, demolition, shoring and alterations of 300 m² or more. Under UAE labour law the employer must compensate injured workers, and contractors stay liable for structural defects for 10 years.
When Dubai requires insurance
Executive Council Resolution No. 28 of 2022 applies across Dubai, including special development zones and free zones such as DIFC. To get a permit, the contractor must submit an insurance policy from an insurance company for:
- construction of buildings;
- alteration or addition works of 300 m² or more;
- demolition and shoring works;
- any other works Dubai Municipality sets with the permit authority.
The policy must cover the risks, losses and material damage of the works, and civil liability to third parties. For building, alteration and addition works it must stay valid from the permit until one year after the completion certificate. It cannot be cancelled or changed during that time without approval, and it replaces the security deposits once taken for permits. The resolution does not set minimum amounts.
The covers to ask about
| Cover | What it covers |
|---|---|
| Contractors' all risks (CAR) | Physical damage to the works, usually including materials on site, at full reinstatement value. Defects themselves are usually excluded. |
| Third-party liability | Death or injury to other people, and damage to their property, before the works are handed over. It does not cover the contractor's employees or the works. |
| Workers' compensation or employer's liability | The contractor's liability for death or injury to its own employees while doing the work. |
| Decennial liability insurance | The contractor's 10-year liability for structural defects and collapse. |
| Professional indemnity (PI) | Negligence in design, for consultants and design-and-build contractors. |
Worker injuries: what labour law requires
Under Federal Decree-Law No. 33 of 2021, an employer must treat and compensate a worker for any work-related injury or illness. Compensation is paid within 10 days of the medical report that states the disability percentage. For death or permanent total disability it equals 24 months of basic wage, at least AED 18,000 and at most AED 200,000. The employer must tell the Ministry of Human Resources and Emiratisation within 48 hours of the incident. Dubai also requires private-sector employers to provide health insurance for their staff.
The sources we read do not say a separate injury insurance policy is compulsory. The duty to compensate sits with the employer either way, so ask how your contractor covers it.
Decennial liability: what the Civil Code says
Articles 880 to 883 of the 1985 UAE Civil Code (Federal Law No. 5 of 1985) set this rule:
- Article 880. Where an architect designs a building and a contractor builds it under the architect's supervision, both are jointly liable to the owner for 10 years for a total or partial collapse, or for any defect that threatens the stability or safety of the building. This applies even if the defect comes from the land, or the owner agreed to the defective work. The 10 years start when the work is handed over.
- Article 881. An architect who only prepared the design is liable only for defects in the design.
- Article 882. Any agreement to exclude or limit this liability is void.
- Article 883. No claim can be heard more than 3 years after the collapse or the discovery of the defect.
The law has changed. A new Civil Transactions Law, Federal Decree-Law No. 25 of 2025, replaced the 1985 code on 1 June 2026. The same rule is now in Articles 821 to 824. It refers to engineers rather than architects, makes engineers and contractors jointly and severally liable, can make a supervision-only engineer liable for defects in the work they supervised, and keeps the 3-year claim period and the ban on excluding liability. Law firms read the new text as fixing the period at 10 years, where the old code let a contract set a longer one. A main contractor's claims against its subcontractors fall outside the regime. The sources we read do not say how the new law applies to contracts signed before 1 June 2026.
Contractors often insure this liability. The sources we read do not say decennial insurance is compulsory.
Professional indemnity for consultants
PI insurance covers design consultants, such as architects and engineers, and design-and-build contractors against claims for negligent design. It is written on a claims-made basis, so it generally needs to stay in force until the limitation period ends. The coverage we read of Dubai's consultant law, Law No. 14 of 2025, does not mention an insurance requirement. Ask your consultant whether they hold PI and for how much. See the consultant law guide.
What to ask to see
- A current certificate for each cover, not a quote or an application.
- The insured name matches the trade licence. How to check the licence.
- The policy dates cover your whole job. For permit-level work, cover runs until one year after the completion certificate.
- The type of work and the site are covered, and the limit of cover is shown.
- Third-party cover includes damage to neighbouring and community property.
- For work that needs a permit, confirmation the policy was submitted for it.
- For design work, the consultant's PI certificate.
Insurance is one check. Also confirm the contractor is on the Contractor Register.
What SoukLocal checks
The SoukLocal Verified standard requires every contracting business to hold third-party liability insurance covering its listed work, valid on the date we check. We see the current certificate, and we re-check when the policy expires. We do not check whether the cover limit suits your project, so ask for the certificate yourself. How we verify.
Sources
- Dubai Legislation Portal: Executive Council Resolution No. 28 of 2022 on the insurance policy for construction works
- Al Tamimi & Co: Insurance in construction contracts, a few things to know
- Al Tamimi & Co: Time bars in Articles 880 and 883 of the UAE Civil Code
- HAS Law Firm via Mondaq: Construction law in transition under the UAE's new Civil Code (29 May 2026)
- White & Case: Key changes under UAE Federal Decree-Law No. 25 of 2025 (5 June 2026)
- u.ae: Health and safety at the workplace
- Khaleej Times: New law regulating engineering consultancies (5 October 2025)
This guide is general information, not legal advice. Rules change and vary by community and authority: confirm with the authority or your consultant before you start work.