Being a tour operator means that you are exposed to a number of risks when your customers book with you. You are responsible for them whilst they are travelling and for the performance of your suppliers.
Most travel businesses therefore choose to insure against these risks to protect themselves financially.
Public Liability and Professional Indemnity
This is arguably the most important insurance to put in place and is often a condition of membership for trade associations or regulators.
If your customer is injured whilst on their holiday or if they suffer damage to their property or their trip isn’t what they expected, they may pursue a legal claim against you. This could cause you a significant financial loss as well as damage to your reputation.
We work with a number of insurers to offer combined liabilities policies, which are designed specifically for tour operators to cover both of these risks, giving you peace of mind, at a competitive price.
You may wish to extend cover to include:
- Directors & officers
When managing a business, you may take decisions and actions that put you at risk so we offer cover that financially protects anyone in your business involved in management or critical decision making.
- Cyber insurance
No matter what size business you have, the threat of a cyber-attack is increasing and with greater reliance on technology, the impact on your business could be significant. To protect your business, we offer cyber insurance to cover losses from damage to your IT systems or loss of information as a result of cybercrime.
- Employers’ liability
If you are an employer, you are legally required to have employers’ liability insurance or you could face significant fines. This insurance provides cover for any claims arising due to your employees being injured during the course of their employment and you can reduce the hassle of arranging separate cover by including it with your Combined Tour Operators Liability policy.
Supplier Failure and Scheduled Airline Failure Insurance
If you organise packages, you are responsible for the performance of all components of the trip. If any of your suppliers cease trading, you would need to make alternative arrangements for your customer, at no extra cost, or refund them. If you’ve already paid your suppliers, your only recourse may be through the liquidator, meaning you are likely to lose out financially.
Although you can reduce your risks by choosing your suppliers carefully, many travel businesses cover themselves through supplier failure insurance or scheduled airline failure insurance.
If you’d like to protect your business with any of the above insurances, get in touch for more details or an application form.