All tour operators will require insurance protection, but there are some types of cover that you may not have considered, but could be essential to mitigating the risks associated with your tour company. By Gavin Courtenay.
Here are the top seven types of insurance cover that every tour operator should consider:
1. General Public Liability Insurance (GPL)
A GPL Insurance policy is the first cover that is considered mandatory by most tour operators. This type of policy protects your company against bodily injury or property damage claims by third parties (third parties include clients and the general public), which arise out of your business’s activities or operations. GPL insurance also covers the legal cost of defending the company against third party claims.
2. Errors and Omissions
The second type of policy that should be seriously considered by all tour operators is Errors and Omissions, which is sometimes referred to as Professional Indemnity Insurance. Errors and Omissions Insurance protects the insured against claims that can arise from errors or failure to perform work specified in a contract, or omissions in the performance of professional duties. Tour operators are often required to carry Errors and Omissions Insurance in order to comply with professional association requirements, professional standards legislation or to meet the requirements of their clients.
3. Cyber Liability Insurance
Do you book or sell tours online? Do you enable clients to enter their personal information on your website or do you receive personal information via email? Cyber Liability Insurance is a coverage that is considered more and more important for tour operators, especially with the increase in doing business over the Internet, including selling tours and accepting payments online. In today’s technological environments, you probably accesses many forms of electronic data services that can put your company at risk of cyber hacking or by disclosing the private information of our clients and companies with which you do business. Costs for repairs as well as legal costs of settling claims of privacy infringement can be crippling, so it’s important to consider Cyber Liability Insurance as part of your portfolio.
4. Kidnap and Ransom Insurance
Do your employees lead or work on tours themselves, either locally or overseas? If so, they could be exposed to domestic or international threats, such as kidnapping and extortion. Kidnap and Ransom Insurance can help mitigate your risks and cover you from losses arising from the kidnapping and holding of an insured person for ransom, or from the threat to do harm to a person or property, if a ransom is not paid. Coverage can include kidnapping, the threat to kidnap, injure or kill an insured person, property damage extortion, wrongful detention or hijacking.
5. Crime Insurance
Do your employees handle company money or have access to important documents? Crime Insurance policies are designed to protect businesses from financial loss due to crimes of theft by employees. A commercial crime policy typically provides several different types of crime coverage including: employee dishonesty coverage; forgery or alteration coverage; computer fraud coverage; funds transfer fraud coverage; money and securities coverage; and money orders and counterfeit money coverage.
6. Commercial Motor Fleet Insurance
Does your tour company own and operate vehicles? You can protect all your vehicles, including cars, trucks, vans and trailers, with motor fleet insurance. This includes coverage for:
- Third-party liability costs for bodily injury and property damages.
- Physical damage to your vehicle arising from collision with another vehicle or object.
- Medical expenses for the insured in case of an accident.
- Fare Paying Passengers. Either passenger liability cover; passenger personal accident cover; or a combination of both covers can be arranged.
7. Property Insurance
If you own or rent office space, then property insurance is important to consider. After all, your buildings and improvements, stock and equipment are all assets to your business, and any loss will cost you both financially and in terms of time if you’re not adequately protected.
About the Author. Gavin Courteany is the Managing Director of SATIB Insurance Brokers, a registered financial services company and accredited SATSA member who have been providing tailor-made insurance cover for the tourism industry for over 23 years. SATIB cater to the tourism trade’s unique risk transfer needs through six specialised business units: Tourism & Leisure, Wildlife & Agriculture, Life & Investments. Domestic, Commercial & Industrial and Sport & Leisure. SATIB is a level 3 BBE status company. For more information visit: www.satib.com