The “Duty of Disclosure”: Why Honesty Saves You Thousands

Utmost Good Faith

In UAE law, insurance is based on a principle called “Utmost Good Faith.” This means you must tell the insurer every detail about your business. If you hide a risk to get a lower price, your whole Tour Operators Insurance Policy could be cancelled when you try to make a claim. At CoverB, we help you understand what you must tell your insurer in 2026.

What Counts as a “Material Fact”?

A material fact is anything that would make an insurer change the price or refuse to cover you.

• Previous Accidents: Did you have a bus crash two years ago? You must say so.
• Activities: Do you say you only do bus tours but actually offer jet skis? That is a major risk.
• Staff Training: Do your drivers have the correct heavy-vehicle licenses? If a claim happens and the insurer finds out you lied, they will use Article 1028 of the UAE Civil Code to refuse payment. You will be left alone to pay the damages.

The “Sophisticated Business” Rule

In 2026, the law treats tour operators as “Sophisticated Parties.” This means the court expects you to know your business risks. You cannot say “I didn’t know I had to tell you.” This is why CoverB uses a simple, guided questionnaire. We ask the right questions so you don’t accidentally forget an important detail. We make sure your Tour Operators Liability insurance is actually valid when you need it.

How to Fix a Mistake

If you realize you forgot to mention an activity, don’t panic. You can update your policy at any time. Our portal at https://coverb.ae/ allows you to add “Endorsements” instantly. It is better to pay a small extra fee now than to lose everything later.

Transparency with CoverB

We believe in a “No Hidden Secrets” approach. When you get a quote from https://coverb.ae/liability/tour-operators-liability-insurance/, we show you exactly what we are covering. We help you build a policy based on truth, which is the only way to stay safe in the long run.