Professional Liability Insurance for Lawyers in the UAE: A Mandatory Protection in 2025
Executive Summary
Professional liability insurance has become one of the most critical legal requirements for practicing law in the UAE. Under the new ministerial decisions of 2025, lawyers, legal consultants, and law firms must provide valid insurance policies that cover risks arising from professional errors. This requirement enhances trust in the legal sector and provides financial protection for both clients and practitioners.
Introduction
Legal professionals face significant financial risks if errors occur during the practice of law. To address this, the Professional Liability Insurance Policy has been made mandatory by the UAE Ministry of Justice in 2025. Its goals are to:
- Strengthen transparency and client protection.
- Improve the overall quality of legal services.
- Ensure a safe and balanced legal environment.
Why Is Professional Liability Insurance Mandatory?
- Covers professional errors such as negligence or breach of duty.
- Compensates clients for financial losses caused by mistakes.
- Ensures business continuity without severe financial risks.
- Mandatory requirement for the renewal of lawyers’ registration and law firm licenses.
Insurance Policy Values (Examples from Ministerial Decision)
Category | Minimum Coverage |
|---|---|
Emirati lawyer (primary & appeal courts) | AED 1,000,000 |
Emirati lawyer (Supreme Court) | AED 2,000,000 |
Non-Emirati lawyer (primary & appeal courts) | AED 2,000,000 |
Non-Emirati lawyer (Supreme Court) | AED 3,000,000 |
Role of Law Firms and Legal Consultancies
- Ensuring timely renewal of insurance policies.
- Training lawyers on professional risk management.
- Investing in LegalTech solutions to reduce human errors.
- Building stronger client trust by offering additional financial guarantees.
Opportunities and Challenges
Opportunities | Challenges |
|---|---|
Strengthening trust between clients and law firms | High costs of comprehensive policies |
Protecting lawyers from unexpected losses | Continuous compliance with Ministry of Justice requirements |
Enhancing reputation of legal practices | Disparity in coverage amounts between Emirati and non-Emirati lawyers |
To read the full decision in PDF format, you can download the file here
Frequently Asked Questions (FAQ)
What is professional liability insurance for lawyers?
It is an insurance policy that covers financial compensation for professional errors committed during legal practice.
Is it mandatory?
Yes. According to the Minister of Justice’s decision in 2025, it is a core requirement for registration and license renewal.
Who pays for the insurance policy?
Typically, it is borne by the lawyer or the law firm, depending on the size and nature of the practice.
Does it cover all types of errors?
It covers most professional errors, excluding cases of fraud, deceit, or gross violations of the law.
Dr. Abdulwahab Abdool
Managing Partner
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