Businesses across the GCC are dealing with a wider range of risks than ever before. Geopolitical tensions, cyber threats, supply-chain disruption and changing working arrangements can all affect how a business operates.

The challenge is that these risks rarely affect just one area. A single incident could damage property, interrupt operations, put employees at risk, delay suppliers or create opportunities for cybercrime. It may also leave directors and senior leaders having to explain the decisions they made.

That is why businesses should not look at each insurance policy separately. It is important to understand how different types of cover work together, where potential gaps may exist, and how risk can be assessed, quantified and mitigated in advance.

Risk Management: Assessing and Mitigating Exposure

Effective risk management is the foundation of any strong business insurance programme in the GCC. Businesses should not only identify potential risks but also assess their likelihood and quantify the potential financial and operational impact.

Tools such as scenario analysis, stress testing and business interruption (BI) studies can help organizations understand how different events may affect revenue, operations and recovery timelines. These insights allow businesses to make informed decisions about appropriate insurance limits, indemnity periods and risk mitigation strategies.

Risk mitigation measures may include strengthening cybersecurity controls, diversifying suppliers, improving crisis response plans and ensuring clear communication protocols. By combining risk management with insurance, businesses can reduce both the likelihood of an incident and its overall impact.

Property and Business Interruption Insurance

Property insurance can protect buildings, equipment, stock and other physical assets against insured damage. However, standard property policies exclude losses linked to war, terrorism or political violence.

Depending on where a business operates and the risks it faces, additional covers or separate policies such as political violence insurance may be needed.

Businesses should also think beyond physical damage. Even when a property is not directly affected, the company may still lose income because employees cannot access the premises, a nearby road is closed, a port is disrupted or important infrastructure is unavailable. Or the business could be impacted because a supplier on which the company depends, has suffered an incident.

Business interruption insurance may help cover this loss of income. Extensions such as denial of access, or supplier’s extensions can provide additional protection.

However, the information declared under the policy must be accurate. Gross profit figures, waiting periods and indemnity periods should reflect how long the business would realistically need to recover. BI studies can support this by providing data-driven estimates of potential losses and recovery timelines.

Cyber Insurance and Crime Protection

Uncertain periods can also make businesses more vulnerable to cybercrime and fraud.

Remote working, Bring Your Own Device tolerance and less face-to-face communication can make it easier for criminals to deceive employees through phishing, social engineering and fraudulent instructions

Cyber insurance may give a business access to forensic experts, legal advisers, incident-response specialists and data-recovery services. Depending on the policy, it may also cover business interruption, cyber liability and certain extortion-related costs.

Crime insurance can provide additional protection against employee theft, computer crime, third-party fraud and other forms of dishonesty.

Reviewing cyber and crime insurance together can help businesses understand what each policy covers and whether any gaps exist between them.

Directors and Officers Liability Insurance

During periods of disruption, directors and senior managers often need to make difficult decisions about employee safety, insurance, business continuity, working arrangements and other operational and strategic priorities

Those decisions may later be questioned by shareholders, employees or other stakeholders.

Directors and Officers liability insurance, commonly known as D&O insurance, can protect board members, senior management and employees against accusations brought against them relating to decisions and actions taken as part of performing their corporate responsibilities.

However, insurance does not replace good decision-making. Management teams should carefully consider their options, rely on structured risk assessments and keep clear records showing why important decisions were made.

Employee Benefits and People Risk

Protecting employees involves more than providing medical insurance.

Group life insurance, workers’ compensation, employer’s liability and business travel insurance may all respond differently during a crisis.

For example, group life insurance may include restrictions relating to war, terrorism or may extend to cover passive war exposure. Medical insurance may cover emergency treatment but exclude ongoing care connected to a conflict-related injury.

Businesses should also consider whether employees remain covered when working remotely from their home country or another location outside their usual place of employment. Coverage terms can vary depending on policy conditions, territorial limits and insurer requirements.

Workers’ compensation coverage may depend on where an employee is working, whether the injury is work-related and whether the policy includes worldwide or remote-working cover. In many cases, policies are designed to cover employees while at their designated workplace or while travelling to and from work, so it is important to confirm whether working from home is included.

Looking at these policies together can give businesses a clearer understanding of how employees are protected in the office, at home and while travelling.

Supply Chain, Project and Political Risk Insurance

A business can also be affected by events that happen far beyond its own premises.

Construction delays, port closures, damaged cargo, supplier problems and customer non-payment may all affect revenue, even when the business has not suffered direct physical damage.

Depending on the exposure, businesses may need marine cargo insurance, trade credit insurance, political risk insurance, construction insurance or project-specific political violence cover. Business may also need to extend certain covers to include their suppliers, additional cost of working, Utility /service interruption cover and Contingent business interruption cover.

What Insurance Should GCC Businesses Review During Uncertain Times?

Businesses should review their full portfolio of insurance policies, including but not limited to: property and business interruption, cyber and crime insurance, D&O, employee benefits, workers’ compensation and business travel cover. Depending on their operations, they may also need marine cargo (incl war cover), trade credit, political risk, construction or political violence insurance.

Building a Stronger Insurance Programme

Insurance needs change as a business grows, enters new markets, hires more employees and becomes more dependent on technology and external suppliers.

A business insurance review in the GCC should consider whether asset values and business interruption figures are still accurate, cyber and crime limits reflect current risks, employees are protected across different locations, D&O limits remain suitable and important exclusions are clearly understood.

Insurance gaps often become obvious only after something goes wrong. Reviewing coverage in advance, supported by structured risk assessments and scenario planning, can help protect a business’s people, property, income, leadership and ability to continue operating.

ACE Gallagher works with businesses across the region to understand changing risks, review existing insurance programmes and identify cover that supports their needs.