Insuring one’s company to secure major contracts

Question:-

My question is regarding company insurance. My brother has started a solar installation company, which is still in its infant stages, as the company mostly does installation for residential areas. He, however, wishes to go into the commercial field and do installation for big companies.

After speaking with some of these companies, it has come to light that no company will accept third party installers if they are not insured.  Also, if he does manage to procure such a company without being insured, and in his line of work items tend to blow or burn out often due to unforseen circumstances, he fears that it would cripple his company as it is still in its initial stages.

We are aware that insurance is not permissible, but is there any way to draw up a module or have an insurance broker tailor-make one that would fall in the boundaries of Shariah and assist him with his needs?

If not, then we are requesting Mufti Saheb to give some Mashwerah on how to move forward and some words of Targheeb.

Answer:-

Insuring one’s home, company, motor vehicles etc. are all Haraam in terms of Shariah due to insurance comprising of the element of interest and gambling. Our Darul Ifta, therefore, doesn’t approve of any insurance scheme even though it may be carrying an Islamic name. Allah Ta’ala removes calamities through Sadaqah and protects one’s goods when Zakaat is correctly discharged. The words of Allah and His Rasul Salallahu Alaihi Wasallam are undoubtedly correct and applicable to every era, until the day of Qiyaamah.

We, therefore, advise your brother to continue with residential installations and at the same time, inform major companies or businesses of the services offered by him. However, he should make it clear that his company is not insured nor linked with any insurance company. We are confident that if his prices are competitive and his workmanship is good, then many will hire his services through the Fadhl of Allah Ta’ala even though he may not be insured. On the other hand, he should remember that he will not be able to secure any contract that Allah Ta’ala hasn’t destined for him, irrespective of the systems that he may have in place. He should, therefore, place his reliance upon Allah Ta’ala and conduct business without engaging in any form of Haraam. Also, continuously discharge Sadaqah which will serve as a means of protection from all calamities, as explained above.

ALLAH TA’ALA KNOWS BEST!

ANSWERED BY:

Mufti Mohammed Desai

Date: 12 Jumadal Ukhra 1444 / 05 January 2023