DTCM Bank Guarantee vs. Insurance: Do You Need Both in 2026?

Understanding Your Security Deposit

In the Dubai tourism world, the “Bank Guarantee” is a famous term. For years, every agency had to freeze a large amount of money in the bank. In 2026, the rules are still there, but they are smarter. Many owners ask: “If I have the bank guarantee, why do I need travel business insurance in uae?” At CoverB, we help you understand how these two work together to save your business.

The Bank Guarantee: A Safety Lock

The Department of Economy and Tourism (DET) often asks for a guarantee of AED 100,000 to AED 200,000. This money is for the government to use if you disappear or fail to pay your fines. It is a “Security Deposit.” However, it does not cover a guest who breaks their leg on your tour. It does not pay for your legal defense in a court case.

Insurance: Your Active Shield

While the guarantee sits in the bank, your Tour Operator Liability Insurance in uae is active every day. If a guest sues you for AED 500,000, the bank guarantee is not enough. Your insurance policy from CoverB can cover up to AED 1 million or more. It protects your cash flow so you don’t have to touch your savings or your bank guarantee.

Compliance Made Easy

At CoverB, we ensure your insurance policy is accepted by the DET. We help you balance your costs. By having a strong insurance plan, you show the regulators that you are a low-risk business. This makes your annual license renewal much smoother. Visit https://coverb.ae/ to get your compliance check today.