Every type of business assumes risk, and tour and activity companies are no exception. Whether you are experiencing a severe weather event that could impact your ability to run your tours, or a traveler is injured while participating in one of your activities, you will have to have a plan in place in order to effectively manage those risks and deliver a prompt solution. This, among many other reasons, is why you need to have several different types of insurance for your tour and activity company.

Why Insurance Matters for Tour Operators

Insurance policies provide you with coverage that will protect your business and your assets in the event of an unforeseen circumstance. It is important to work with qualified insurance agents who can help you select a policy that will provide you adequate coverage for an affordable price. Most tour operators find that shopping around for 3-5 quotes helps them to find the right policy for their business.

3 Types of Insurance for Tour Operators

1. Assets and Revenue — Insurance that covers your business assets and revenue is absolutely critical, regardless of the types of tours and activities that you provide your customers. All of your business assets must be covered by an insurance policy, as this protects both you and your customers in the event of a fire, burglary, equipment failure or property damage. You also will want to have a policy that will cover your tour company in the event of a business interruption, which is defined as any event that disrupts your normal business operations while you are still responsible for overhead costs.

2. Liability — This is perhaps the most expensive form of insurance that tour and activity providers are required to carry, but it’s critical to growing your business and promoting your brand. Agents often will not book tours and activities if they are not covered by liability insurance, because it puts their own customers at risk. Liability insurance protects your business in the event of an injury or personal property loss while participating in one of your tours and activities. It also should be noted that any contractor you work with also needs to carry public liability insurance as well.

3. People — In addition to protecting your business assets and your customers, you also need to take out a workers’ compensation insurance policy to protect your employees. As your tour operators are managing your equipment and heading out on tours each day, it’s not surprising that they are at risk for being injured on the job. You need to have a workers’ compensation policy in place to provide them with coverage for lost wages in the event of a work-related injury. This type of insurance policy also protects your business against legal claims in case of a work-related illness or injury.

To learn more about how insurance can help you operator your tour and activity company, and to discover additional ways to improve your business, follow the Rezdy blog today.

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