Insurance clauses in UAE contracts and leases
Published UAE purchase terms, free-zone leases and construction forms ask the other party for insurance. Air Products asks a seller to keep cover for 12 months after the contract, and Air Products and a KIZAD lease both ask for 30 days' notice of cancellation. These are contract terms, not law.
What do published UAE contracts and leases ask for on insurance?
They name who insures, which covers, for how long and what proof to give. The table compares four published documents: one purchase contract, one standard lease, one filed lease and one office lease. They are contract terms, not law.
| Term | Air Products purchase terms | DAFZ standard lease 2025, Section 2 | KIZAD lease filed 2022 | Hamriyah office lease |
|---|---|---|---|---|
| Who insures | Seller | Tenant | Tenant | Tenant |
| Cover named | Professional indemnity, product liability and public liability, as appropriate | All risks on premises and assets. Third party liability. Contractors all risks and worker's compensation for works | Premises, contents, civil liability, business interruption where available, workers' compensation and employer's liability | Tenant's personal belongings and effects |
| How long | Contract term plus 12 months | Lease period | Lease term | Not stated |
| Insurer standard | A reputable insurance company | Satisfactory to the landlord on amount, terms and insurer | Reputable insurers licensed to transact business in the UAE | Not stated |
| Other party on the policy | Buyer as additional insured, or an indemnity to principals clause, on public liability | Joint names on third party liability and works cover | Landlord as co-insured on each policy | Not stated |
| Waiver of subrogation | From the employers liability and workmen's compensation insurer | Not stated | All tenant policies | Not stated |
| Cross liability | Not stated | Not stated | Yes, with a primary cover endorsement on liability | Not stated |
| Notice of cancellation | 30 days | Not stated | 30 days in writing | Not stated |
| Proof | Certificate giving details of cover, on request | Copies and evidence of premium on request. Originals for licensing registration | Insurer evidence within 30 days of the effective date. Certified copy 30 days before each policy or renewal. Proof of premium payment | Not stated |
The terms are Air Products clause 10,1 DAFZ clause 5.6,2 KIZAD clause 213 and Hamriyah clause 24.4
Air Products adds clause 10.3 for services at the buyer’s premises: employers common liability and workmen’s compensation, public liability of at least USD 2,000,000 per occurrence, and automobile liability of USD 1,000,000 where applicable. This is one buyer’s terms.
Under DAFZ clause 5.6, if the tenant fails to insure the premises the landlord may do so and recover the cost, and the tenant is solely responsible for the uncovered period. Section 6, for packages, moves the building all risks and third party liability to the landlord, and leaves works cover with the tenant.2 So Section 2 clause 5.6 does not describe a package tenant.
The KIZAD text is one tenant’s lease with Abu Dhabi Ports Company, filed with the US SEC. It sets liability cover at an amount the landlord stipulates, so the filing gives no figure. Hamriyah’s clause also has the tenant follow the requirements of the premises’ insurers.
Does RAKEZ make lease insurance terms a rule?
At RAKEZ it does. Rule 15.1(a) of the RAKEZ Operating Rules has a licensee comply with its insurance obligations under its lease, leasehold, sub-lease or musataha agreement.5 Rule 15.1 also sets construction, liability and workers’ compensation cover before building works, with limits “prescribed by the Authority”.
What proof do free-zone authorities ask for?
DMCC’s FAQ has the third party liability policy show the full company name and all units occupied, and the workmen’s compensation policy show the company name, units if mentioned, and names or number of employees. On a flexi desk or serviced office, it asks for a copy of the provider’s insurance.6 Jafza’s guide has the company update status through the Dubai Trade Portal with an uploaded certificate.7
What do construction contract commentaries say?
Fenwick Elliott writes that some contractor covers may be mandatory for engineering classifications or are “commonly required” under UAE construction contracts.8 That is commentary, with no count behind it. It cites Art 880 of the old Civil Code, repealed from 1 June 2026. The current equivalent is Art 821.9
What do joint names, cross liability and similar terms mean?
One law firm explains them in its construction commentary. These are the firm’s explanations, not policy wording.10
| Term | Explanation given |
|---|---|
| Joint names | A party named on the policy can claim directly under it. |
| Interest noted | The party may share in proceeds but typically has no direct right to claim. |
| Waiver of subrogation | Stops the insurer recovering from another insured party, even where that party contributed to the loss. Insurers generally do not waive this against a party whose interest is only noted. |
| Cross liability | Each party is treated as if a separate policy had been issued to it, so the policy responds to liability between co-insured parties. |
| Per occurrence or aggregate | A separate limit for each event, or a single limit for all claims in the policy period. |
The documents above use different words for the other party’s place on the policy: additional insured, joint names, co-insured. Ask the insurer whether they carry the same effect under your policy.
Do government tenders and mall leases set insurance terms?
- Government tenders. Dubai Law 12 of 2020 has no supplier insurance clause.11
- Client tenders in general. One insurer says a separate cover requirement may arise from licensing, free-zone, contractual or tender terms.12
- Mall leases. One broker’s page gives an AED 10 million tenant limit. No tenant document is known that confirms it.
The small print
- How common these clauses are. Nothing published measures how often any of these clauses appears. The word “common” in commentary is the commentator’s.
- DAFZ regulations. The DAFZ regulations of 2021 mention insurance only for director liability indemnity, so the tenant’s insurance term sits in the lease.13
- Hamriyah. The lease file is undated, and its name suggests 19-10-11. Its Implementing Rules contain no mention of insurance.14
- KIZAD. The lease is a form of lease filed as an exhibit in 2022. It is not a zone rule.3
- FIDIC article. A 2001 article on fidic.org says Clause 18 of FIDIC’s new suite of contracts makes either the employer or the contractor the insuring party, depending on the policy, and that under Sub-Clause 18.1 the insuring party submits evidence of payment when each premium is paid. The clause text printed at the end of that article is a proposed replacement, not FIDIC’s wording. The article states no edition year.15
Sources
15
1Air Products, General Terms and Conditions of Purchase (UAE). Clause 10. Last checked 4 Nov 2026. Source document: General Terms and Conditions of Purchase (UAE)
2DAFZ, Standard Leasing Terms and Conditions 2025, 2025. Section 2 cl 5.6, Section 6 cl 6.4. Last checked 4 Nov 2026. Source document: Standard Leasing Terms and Conditions 2025
3Abu Dhabi Ports Company PJSC, via US SEC EDGAR, Warehouse and Plot Lease, KIZAD Logistics Park (form of lease, Exhibit 10.18). Clause 21. Last checked 4 Nov 2026. Source document: Warehouse and Plot Lease, KIZAD Logistics Park (form of lease, Exhibit 10.18)
4Hamriyah Free Zone Authority, Standard Terms and Conditions of Office Lease. Clause 24. Last checked 4 Nov 2026. Source document: Standard Terms and Conditions of Office Lease
5RAKEZ Authority, RAKEZ Authority Operating Rules of 2023. Rule 15.1. Last checked 4 Nov 2026. Source document: RAKEZ Authority Operating Rules of 2023
6DMCC, Licence Renewal FAQs. Q29, Q30, Q34. Last checked 4 Nov 2026. Source document: Licence Renewal FAQs
7Jafza, Insurance Document Update, Jafza services guide. Last checked 4 Nov 2026. Source document: Insurance Document Update, Jafza services guide
8Fenwick Elliott LLP, via Lexology, At a glance: construction contracts and insurance in United Arab Emirates. Last checked 4 Nov 2026. Source document: At a glance: construction contracts and insurance in United Arab Emirates
9UAE Federal Government, Federal Decree-Law No. 25 of 2025, Civil Transactions Law. Art 821. Effective 1 Jun 2026. Last checked 4 Nov 2026. Source document: Federal Decree-Law No. 25 of 2025, Civil Transactions Law
10Kayrouz and Associates, Construction insurance in the UAE. Last checked 4 Nov 2026. Source document: Construction insurance in the UAE
11General Directorate of Residency and Foreigners Affairs Dubai, Law No. 12 of 2020 Concerning Contracts and Warehouse Management in the Government of Dubai. Last checked 4 Nov 2026. Source document: Law No. 12 of 2020 Concerning Contracts and Warehouse Management in the Government of Dubai
12Al Buhaira National Insurance, Workmen's compensation. Last checked 4 Nov 2026. Source document: Workmen's compensation
13DAFZ, New Rules and Regulations 2021. Last checked 4 Nov 2026. Source document: New Rules and Regulations 2021
14Hamriyah Free Zone Authority, Implementing Rules for FZC. Last checked 4 Nov 2026. Source document: Implementing Rules for FZC
15FIDIC, FIDIC's New Suite of Contracts, Clauses 17 to 19, by Nael G. Bunni, International Construction Law Review, July 2001. Last checked 4 Nov 2026. Source document: FIDIC's New Suite of Contracts, Clauses 17 to 19, by Nael G. Bunni
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- Last review
- Next review due
- 10 Feb 2027
- Status
- Published