What Type of Insurance is needed for Tour Operators?

Each business is different – and so insurance is needed to appreciate how each individual tour operator conducts its operations. Generally, for Australian tour operators, they will need, at the forefront, protection for legal liabilities.

• Third-Party Liability – Insurance protection for claims by a client, vendor, or the public, including defence and settlement costs incurred in litigation

Here at Gow-Gates, we have introduced a revitalised tour operator insurance broker team, including experienced advisers Ella Nicholson and Allison McDonnell, who helped shape our new Travel Agents and Tour Operators Professional Indemnity and Broadform Liability, which is backed by a Lloyd’s of London-supported underwriter.

Our policy features:

• Worldwide coverage
• Bodily Injury cover under a Public Liability policy with limits of liability up to $20m
• Cover for Low, Medium, and High Exposure risks; subject to proper declaration and insurer assessment and acceptance
• Professional Indemnity cover, which may provide Bodily Injury cover, with an aggregate limit of up to $15m
• Low policy excesses ($500) to protect your cash flow
• Customised cover for associated travel organisations

Further, Tour Operators will also want protection for physical assets including building, contents, and motor vehicles, and any business interruption that may arise.

• Property Damage – Covers offices, vehicles, and gear
• Business Interruption – Covers income loss if you can’t operate because of a covered event

These coverages will be arranged under a separate commercial policy, so your business is insured adequately.

In all, these developments reflect a deeper industry focus and our ongoing commitment to meeting the real-world needs of tour operators across Australia.

Need guidance? Speak to a Gow-Gates broker today.

Do I Need Public Liability Insurance as a Tour Operator?

Public liability insurance (PL) is highly recommended for a tour operator. It is considered as one of the most essential coverages.

This insurance can protect your business if a third party is injured, or their property is damaged, and there is legal liability to the public arising out of the operation of your business. For example, if a tourist trips on a trail you are guiding or if a passenger is injured during a bus tour, you could be held liable for their injuries or property damage. Without PL insurance, these costs could quickly become unmanageable. In some cases, a Professional Indemnity policy may pick up the cost – but each claim will turn on the merits of the coverage you have and will depend on the nature of the allegations made and services provided!

At Gow-Gates, in addition to Professional Indemnity, we offer Public Liability Insurance as part of our Travel Agents & Tour Operator Insurance. This package provides coverage for personal injury, property damage, and mental injury claims, ensuring your business is protected from costly legal battles and settlements. Whether you’re operating locally or internationally, we make sure you have the right coverage in place to protect your business and your clients.

Do I Need Insurance to Be a Tour Guide?

This is highly recommended. If you’re a tour guide, insurance will help protect you and your business.

Here’s what you should consider:

1. Public and Products Liability Insurance: This provides cover for legal liability to pay compensation in respect of Injury or Damage (as defined in the insurance policy) as a result of an Occurrence and in connection with your business – including accidents or injuries.
2. Professional Indemnity Insurance: This provides cover for a professional for actions taken against that person or business in tort and/or statute law in respect of advice or services provided as part of their professional practice, including related legal expenses.
3. Tour Operator Commercial Insurance: If you’re working for a larger tour operator or running your own tours, you'll need commercial coverage to address risks like property damage to buildings or contents, potential business interruption, management liability, or cyber insurance.

The Combined Liability Insurance Policy for the Travel Industry offered by Gow-Gates is ideal for tour guides. It includes Professional Indemnity Insurance, which protects you from claims of negligence or errors in the advice or services you provide, and Public and Products Liability Insurance, both of which can cover claims related to personal injury or property damage caused during your tours – where one policy section may respond over the other depending on the nature of the claim made against you.

The Gow-Gates team can separately organise the other insurances needed for your commercial business – like building & contents, business interruption, management liability, cyber insurance, and more.

What is the Difference Between a Travel Agent and a Tour Operator?

While travel agents and tour operators are both crucial parts of the travel industry, there’s a key difference between the two:

• Travel Agents: Primarily responsible for selling and booking travel products like flights, accommodation, and car hire. They serve as intermediaries between customers and service providers.
• Tour Operators: Go a step further by creating, organising, selling, and attending pre-packaged tours that include various components such as transport, accommodation, meals, and activities. They often manage the logistics and itinerary for the entire trip, ensuring a seamless experience for travelers.

Tour operators face unique risks when managing groups of travelers and organising tours. Without the right coverage, even minor incidents can result in major financial setbacks. That’s why Gow-Gates is dedicated to helping tour operators secure the right insurance to protect their businesses from these specific risks.

Is your tour operation properly insured? Protect your business with the right coverage.

Contact a Gow-Gates insurance broker today for tailored advice and coverage.

Disclaimer:

This information is general in advice only and does not take into account your personal objectives, financial situation or needs. The information provided in this blog post is for general informational purposes only and does not constitute legal, financial, or insurance advice.

The response of an insurance policy to a claim can vary depending on each particular circumstance and the terms and conditions of the policy.