My company provides software solutions for corporate clients. One of our clients is insisting that we maintain 'liability insurance', before they can assign the next project to us

· 6 Shaʻban 1423 AH1 min readFatwa 6909English

Question

My company provides software solutions for corporate clients. One of our clients is insisting that we maintain 'liability insurance', before they can assign the next project to us. We have done work for this client before and never had complaints from them but now they state that their head office in USA has directed them to ask all their vendors to maintain insurance. Under such circumstances, is it permissible for us to take an insurance policy just to fulfil their requirement - we have no intention of taking any benefit from the insurance policy? If taking of insurance even under this context is haram, then we have no other option but to refuse the job. But is there any other solution that you can suggest.

Answer

Taking insurance of this nature is prohibited.

You are not compelled to maintain the client. Almighty Allah Ta?ala is the true provider of sustenance.

and Allah Ta'ala Knows Best

Mufti Muhammad Kadwa
FATWA DEPT.

CHECKED AND APPROVED: Mufti Ebrahim Desai

Answered by
Mufti Muhammad Kadwa
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