Tour Operator Insurance
A tour operator is responsible for putting together a package holiday for a client, which includes all of the necessary transportation, lodging, meals and tourist attractions for them to enjoy without having to worry about doing it themselves. Their client base usually includes families with children, couples looking for a romantic getaway, or even solo travellers wanting to explore the world.
With this being said, the package holiday can be big or small, national or international. The role of the tour operator is to put together the ideal combination based on the interests and desires of their customer. Although this sounds exciting, handling so many elements can be stressful, and tour operator insurance should be obtained as a safety net should anything go awry.
If you would like to read more information or learn more about the pricing of business insurance, you can do so here.
Types of Tour Operator Insurance
Professional indemnity insurance
Professional indemnity insurance is the go-to cover for companies that could suffer detrimental financial loss if the error. A tour operator deals with many different suppliers and firms to organize the perfect bundle, which increases the risk of making a mistake, ultimately ruining the entire trip.
For example, a client may request an international holiday for their large family, in response to which the tour operator would be responsible for booking the flights for every family member. With so many people to consider, they may omit one of the passengers’ flight information and not realize, meaning that they cannot be let onto the flight when they arrive at the airport.
The entire package holiday would then be nulled, as a family cannot board without one of its members. The tour operator would need to issue a refund for the trip, putting them in outstanding debt, and even being involved in a lawsuit.
Public liability insurance
Public liability insurance is another valuable type of tour operator insurance to consider when working in a tour operator agency. There is an increased risk of physical injury or property damage when many establishments and activities are involved in the holiday that the client utilizes. No matter which the damage was caused, the customers can hold the tour operator liable if the incident occurred at a place included in the deal by the agency.
For example, suppose the tour operator included a hotel for the clients to stay at and there was a fault, like a broken bed or unstable shelf. In that case, the customer could hold the operator liable for their injuries should they be hurt due to this and need medical attention as to which they should be reimbursed.
Similarly, suppose their luggage was stolen whilst residing in the accommodation, filed a claim. In that case, the operator agency could have a lawsuit filed against them as they were the agency that booked the accommodation in which the accident occurred. Fortunately, public liability insurance could free the tour operator company from these expenses as they would be insured under the policy.
Product liability insurance
The product liability insurance works in the same way as public liability insurance, protecting the company against any claim implying harm caused to the customer because of a product recommended by the tour operator agency. This could be from any element of the holiday put together by the worker, which could injure or destroy property.
Most commonly, many young couples or friends going on holiday like to include a spa or cosmetic treatment in their package deal, as a way of unwinding from hectic everyday life. If any of the products used in this service, for instance, an expired face mask or body scrub, caused a bad reaction and required medical attention, the tour operator would be responsible for paying these costs.
Another famous example is regarding meals; should at any point the clients be served food in the accommodation which does not specify the allergens inside and causes an allergic reaction, they could file a lawsuit. Product liability insurance would cover these costs.
Employers’ liability insurance
Employers’ liability insurance is a cover specifically for the workers of the tour operator agency, protecting the business from claims that the workers were hurt as a result of the job. Any accidents that occurred in the workplace, from tripping over bags left on the floor to having a wonky shelf fall and hit an employee, would come under this policy. Consequently, the injured employee could rest at home knowing that their lost income was covered and even have their medical expenses recompensated should they need hospitalization or treatment to recover from the event.
Tour Operator Insurance
In conclusion, tour operators should obtain tour operator insurance so that they are not negatively impacted by the financial loss incurred from accidents at work or mistakes they made when producing the perfect holiday package. Insurance would cover these expenses instead.
Find out more about the importance of insurance here.
Other useful links about Business Insurance:
Subcontractor Insurance
Startup Insurance
Surveyor Insurance
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