Is force majeure covered by insurance in the UAE? Not automatically. Force majeure is a contract-law concept that may excuse performance when it becomes genuinely impossible, while insurance is a separate contract covering only the risks stated in the policy.
The answer therefore depends on the insured event, exclusions, extensions, physical-damage requirements, and evidence of loss.
Force majeure is not automatically covered by insurance in the UAE. Article 1026 of the Civil Code defines insurance as an agreement under which the insurer pays a set amount when a specified risk occurs in return for a premium. The policy wording therefore controls. Property-damage-triggered losses caused by an insured fire, flood, or earthquake may be covered, together with related business interruption and continuing expenses. Common exclusions include war, civil war, revolution, insurrection, hostile acts, and pandemics unless an extension applies. Many business interruption policies require physical damage. Government closure, supply disruption, or operational loss without physical damage may fall outside cover. Ambiguous exclusions may sometimes be interpreted in the policyholder’s favour, but that is a fallback rather than a substitute for clear coverage.
When Is Force Majeure Covered by Insurance in the UAE?
Coverage exists only where the event and the resulting loss fall within the policy’s insuring clause and no exclusion removes them. The legal force majeure label does not itself create insurance coverage.
Article 1026 of the Civil Code defines insurance by reference to a specified risk and a premium. An insurer is generally not liable for an event that the policy does not name or otherwise cover.
Losses That May Be Covered
- Property damage caused by a covered fire, flood, or earthquake.
- Loss of income during a covered business interruption.
- Continuing expenses during a covered interruption.
- General property damage falling within the policy wording.
Common Exclusions and Gaps
- War, civil war, revolution, insurrection, and hostile acts.
- Pandemic losses unless the policy includes an applicable extension.
- Purely operational loss where no insured physical damage occurred.
- Partial closures, undocumented income, and most power outages.
Standard small-business policies commonly exclude pandemics unless an extension was purchased. Whether any event is covered still depends on the actual wording and facts.
Think Your Loss Might Fall Inside an Exclusion?
War, pandemics, and undocumented income are commonly excluded, but the exact wording in your policy is what actually decides it. Leaders Advocates can read the clause against your specific loss before you file or dispute a claim.
Why Physical Damage Matters
Many business interruption policies require a covered physical-damage event before lost income or continuing expenses are payable. A government closure, supply-chain disruption, or inability to operate may therefore remain uninsured where no qualifying physical damage occurred.
What If an Exclusion Is Unclear?
Where an exclusion is ambiguous, unclear, or was not clearly presented, UAE courts or regulators may interpret it in the policyholder’s favour. This is a possible fallback only and does not replace a clear grant of coverage.
The April 2024 Severe Weather Response
After the severe weather in April 2024, the UAE Central Bank issued a circular authorising banks and insurers to defer personal and car loan instalments for six months for affected customers.
That was a regulatory intervention. It does not mean every weather-related business loss was privately insured, and policy coverage could still be limited or absent.
Has an insurer denied a force majeure-related claim? A UAE insurance disputes lawyer from our team can review the policy wording, exclusions, trigger, evidence, and denial letter.
Already Had a Force Majeure Claim Denied?
A denial letter is not the final word. We can review the policy wording, the exclusion the insurer relied on, and the evidence of loss to see whether the decision holds up.
Relevant Legal Services
A Contract Lawyer in Dubai can review the policy wording and risk allocation. A Civil Lawyer in Dubai can assess a coverage claim, while a Litigation Lawyer in Dubai can advise if the dispute proceeds to court.
People Also Ask
Whether force majeure is covered by insurance in the UAE is a policy-specific question. The event, physical damage, exclusions, extensions, and proof of loss should all be reviewed together.
Unsure Whether Your Policy Actually Covers This?
Force majeure and insurance are two different questions, and conflating them is the most common reason claims get denied. Leaders Advocates reviews the policy, the trigger, and the exclusions together before you rely on either one.
