The tour operators industry will be $10 billion in the US in 2023. This is a massive jump from when it fell to $4 billion 2020.
You need to be wary about potential liabilities that could cost your business financially. A travel agent might become confused about the features of the travel package and provide misleading information to the client. The tour guide business you’re working with might accuse you of failing to meet contract agreements.
If you want to stand the best chance of protecting your business, you will want to get tour operators insurance. This is a policy made up of several different components that provide the liability protection necessary for you to be successful. Keep reading to find out what you need to know about tour operator insurance.
| CoverWallet | NEXT (Best) | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $2,000,000 | $1,000,000/$2,000,000 |
| Aggregate limit | $2,000,000 | $2,000,000 | $1,000,000/$2,000,000 | $2,000,000 | $1,000,000/$2,000,000 |
| Products and completed operations aggregate limit | $2,000,000 | $1,000,000 | $2,000,000 | $1,000,000 | $1,000,000 |
| Advertising injury coverage aggregate limit | $1,000,000 | $1,000,000 | $2,000,000 | $1,000,000 | $1,000,000 |
| Tenant’s legal liability coverage limit | $300,000/$1,000,000 | $300,000 | $100,000 | $100,000 | $1,000,000 |
| Waiver of subrogation included? | Yes | No | Included | Can be included | No |
| Hired/non-owned auto liability coverage included? | Yes | No | No | Can be included | Can be included |
| Equipment breakdown floater included? | No | Yes | Yes | Can be included | Can be included |
| Can you get a certificate of insurance online? | Yes | Yes | Yes | Yes | Yes |
| Name additional insureds? | Yes | Yes | Yes | Yes | Yes |
| Deductible | $0 | $0 | $0 | $0 | $0 |
General liability insurance for tour operators is a policy that protects your business from liability claims from customers and the public. Typically these claims will be for personal injury and property damage from your business services. Examples of when to use this tour operators liability insurance include:
A customer trips while in your office
An employee accidentally breaks a customer's phone during normal business operations
General liability insurance has a typical coverage limit of $1 million per occurrence and $2 million in aggregate.
Your insurance policy can be further customized through add-ons. Some common considerations include:
Hired and non-owned auto coverage–Adds financial protection for employee vehicles that are used for business purposes
Tools and equipment coverage–Protects the tools and equipment you use in your tour operator business, even used outside of your business premises, from damage and theft
General liability insurance is not typically required by law for businesses. However, it is one of the most essential forms of coverage for your tour operating business since it protects you from customer and public liability, which are common causes of lawsuits.
| CoverWallet | NEXT | Thimble (Best) | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $1,000,000 | $1,000,000 |
| Aggregate limit | $2,000,000 | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000 | $2,000,000 |
| Name additional insureds? | Yes | Yes | Yes | Yes | Yes |
| Waiver of subrogation included? | Yes | No | Yes | Can be included | No |
| HIPAA coverage included? | No | No | No | No | No |
| Sexual misconduct coverage included? | No | No | No | No | Can be included |
| License defense coverage included? | No | No | No | No | Can be included |
| Deductible | $500 | $500 | $500 | $50/$10,000 | $500 |
Professional liability insurance is a common component of tour operator business insurance programs. It protects your company from any mistakes or negligence that you or your employees make in your business service. This insurance covers situations that include:
A tour guide you employed takes customers down the wrong path, causing them to miss a part of the tour they wanted to see
An accounting error causes you to receive a lawsuit from a business partner
The typical coverage limits of professional liability insurance will vary. Typically you see $1 million per occurrence and $1 million in aggregate for the coverage limits.
Tour operators could benefit from an extended reporting period add-on to allow them more time to file a claim. Be sure to check the tour operators liability insurance policy wording closely so you know when you are protected from liability claims filed right at the moment or much later on. Another add-on for professional liability to consider is an additional insured add-on. This lets you add other parties to an already existing policy.
Public liability insurance for tour operators is a form of insurance that is specialized to deal with claims from the general public interacting with your business. Some examples of times to use this policy include:
A tour group you arranged runs into pedestrians and causes injuries
A member of the general public walks into your tour operator's office and slips, hurting their back
You will find that a public liability coverage limit of $1 million per occurrence will suffice for a small tour operator business.
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| CoverWallet | NEXT (Best) | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Building coverage limit (minimum) | $50,000 | $260,000 | $25,000/$500,000 | $25,000 | $60,000 |
| Contents coverage limit (minimum) | $50,000 | $22,000 | $25,000/$500,000 | $25,000 | $60,000 |
| Outdoor signs | Excluded | $2,500 | Excluded | Excluded | Excluded |
| Accounts receivable | Excluded | Excluded | $5,000/10,000 | Included | Excluded |
| Money and securities | Excluded | $2,500 | $1,000 | Included | Excluded |
| Lock and keys | Excluded | $2,500 | Excluded | Excluded | Excluded |
| Business interruption floater | Excluded | Included | Included | Included | Excluded |
| Equipment breakdown floater | Excluded | Included | Excluded | Excluded | Excluded |
| Inland marine insurance floater | Excluded | Excluded | $10,000 | Excluded | Excluded |
| Employee dishonesty floater | Excluded | $5,000 | $2,500 | Included | Excluded |
Commercial property insurance is responsible for protecting your own commercial premises and the business property contained in it. This policy will protect against liabilities from physical events like fires and floods, as well as human-caused incidents like vandalism and theft. Below are a few situations where this policy can be applied.
A lightning strike takes out the power to your tour operator's office and causes damage to your electronics
A thief breaks into your tour office at night to steal your valuable business assets
Flood insurance will be a good commercial property policy add-on because it is typically not covered as a source of damage. If you live in an area that regularly sees flooding, it can be especially valuable. Earthquake insurance can also be a valuable add-on since many policies don’t cover land movements and landslide events by default.
Coverage limits for commercial property insurance will vary based on the value of your business property, but generally, small businesses see a coverage limit of about $60,000 for property damage.
