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.
Get all the best quotes from leading providers in a click of a button!
| 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.
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| CoverWallet | Thimble (Best) | NEXT | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| General liability aggregate limit | $2,000,000 | $2,000,000 | $2,000,000 | $300,000 | $1,000,000/$2,000,000 |
| Commercial property coverage limit | $50,000 | $500,000 | $260,000 | $25,000 | $75,000 |
| Optional policies can be added? | Yes | Yes | Yes | Yes | Yes |
| Name additional insureds for free? | Yes | Yes | Yes | Yes | Yes |
| BOP discount? | Yes | Yes | Yes | Yes | Yes |
Business owner’s policy combines multiple policy options like general liability and commercial property into one convenient policy. This policy can be further customized with more add-ons as well. Some situations where a BOP is useful include:
A customer slip and fall damages both the customer and part of your property, but since you have a business owner’s policy, you are covered for both
A thief breaks into your business to steal your assets and destroy some of them as well
Cyber liability–Protects your business from data breaches and cyber attacks
Commercial crime–Protects your business from costs associated with the consequences of employee theft, robbery, forgery, and employee dishonesty.
Equipment breakdown–Helps repair or entirely replace equipment that breaks down from events like a power surge
Business owner’s policy can offer coverage ranging from as low as $300,000 to as high as $2 million. You will want to determine your amount of risk to decide just how much coverage you will need.
| NEXT | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|
| Aggregate limit | $3,000/$10,000 | $2,500/$5,000 | $15,000/$25,000 | $5,000-$10,000 |
| Covers hired and borrowed equipment? | $3,000/$10,000 | $2,500/$5,000 | No | Yes |
| Miscellaneous equipment also covered? | $5,000/$10,000 | No | Yes | Yes |
| Offered as an endorsement to general liability insurance? | Yes | Yes | Yes | Yes |
| Deductible | $500 | $500 | $0 | $0 |
Tools and equipment insurance covers the repair of computers, cameras, and other business equipment that got damaged, lost, or destroyed. One advantage of this policy is that you can take your tools off your business premises and still have them covered. Situations, when this policy might be good to get, include:
You take a piece of equipment you use to schedule tours away from your office, and it gets damaged
One of your employees damages a vital tool you need to help arrange accommodations and tour groups for clients
Tools and equipment insurance will cover movable tools under $10,000 and around $5,000 for equipment.
You might want to pick up equipment breakdown coverage, which extends the situations where you can get equipment repaired or replaced.
Another add-on to consider is inland marine coverage. This will protect your tools and equipment from damage when being transported across the land.
No, typically, if you fail to exercise proper maintenance and safety standards with tools or equipment you use in your tour operator business, you would not qualify for coverage under this policy.
Commercial auto insurance provides protection for your business vehicles that you may utilize in your tour operator business. Below are some examples of where this insurance can be useful.
While traveling to hire a tour guide, you get into a collision accident
Your business vehicle is parked at your business, but it gets broken into and vandalized
Commercial auto insurance coverage is comprised of:
Collision–This helps repair or replace your vehicle if it gets into a road collision with another vehicle
Comprehensive–Covers physical damage to your car, not from a road collision
Road assistance–Helps you pay for costs to get your car towed or repaired while it is broken down at the side of the road
Uninsured motorist–Provides coverage when another person’s insurance cannot cover damages they are liable for
Auto liability–When you are found at fault, it helps you pay our injury damages and property damages that you owe
While there are no clear rules about the coverage to get, insurance companies will typically offer $100,000 in auto liability, and it is recommended that you get between $500,000 and $1 million in coverage.
Workers’ compensation insurance is a policy that a tour operator buys to protect employees when they get injured or ill while on the job. Some cases where this insurance provides protection include:
While working in the office, an employee strains their back and has a limited range of motion, reducing their ability to work
One of your employees slips and falls, damaging their leg to the point they need a medical procedure
Yes, if you have part-time and full-time employees, most states will require that you purchase a workers’ compensation policy.
No, they are not typically included in a workers’ compensation policy. You would need to add them as additional insured to extend coverage to employees you want to receive benefits.
Financial failure insurance for tour operators is an insurance policy that protects your customers if you cease operations. It is often a component of tour operators insurance policies and ensures you can meet your legal and financial obligations. Some examples of when this insurance kicks in include:
You take money for a holiday tour package from a customer but are unable to fulfill their service request
A customer wants their money back for a tour package, but your business has stopped trading
Insolvency insurance for tour operators is provided as a blanket coverage and as a surety bond. If availed as a blanket coverage, insolvency insurance will cover customer refunds for advance payments and services paid for. A surety-type tour operator insolvency insurance on the other hand covers incidents of misappropriation.
This is useful in case you frequently send employees abroad to join workshops, seminars, or conferences. Travel insurance for tour operators accounts for the cost of unexpected events that might happen during a trip such as lost luggage, flight cancellations, flight delays, and bodily injuries of employees.
| Cost per Month | Cost per Year | Deductible | |
|---|---|---|---|
| General liability insurance | $38 | $456 | $0-$500 |
| Professional liability insurance | $40 | $480 | $500-$1,000 |
| Commercial property insurance | $48 | $576 | $1,000-$2,000 |
| Business owner’s policy | $70 | $840 | $1,500 |
| Insolvency insurance | $50 | $600 | $1,000-$2,000 |
| Commercial auto insurance | $55 | $660 | $500-$1,000 |
| Tools and equipment insurance | $44 | $528 | $500-$1,000 |
| Workers compensation insurance | $92 | $1,104 | $2,000-$5,000 |
| Travel insurance | $63 | $756 | $1,000-$2,000 |
The average tour operator insurance cost is $38 per month or $456 per year for a $1 million general liability insurance. Factors that affect the cost of premiums are claims history, business history, policy limits, revenues, location, and number of employees. Here’s a table showing the cost of a $1 million general liability insurance from companies we recommend:
| Cost per Month | Cost per Year | Best for | |
|---|---|---|---|
| NEXT | $20 | $240 | Best overall; Fastest general liability insurance for tour operators |
| The Hartford | $23 | $276 | Workers compensation insurance for tour operators |
| CoverWallet | $26 | $312 | Comparing tour operator insurance quotes online |
| Tivly | $27 | $324 | Best selection of partners for tour operator insurance |
| Thimble | $29 | $348 | On-demand coverage for tour operators |
| Hiscox | $32 | $384 | Tour operator insurance with worldwide coverage |
| AON | $34 | $408 | Extra worldwide protection options for tour operators |
Get all the best quotes from leading providers in a click of a button!
Here are the best tour operator insurance companies. Read some of the reviews below to know their pros, cons, and average rate for a $1 million general liability insurance.
Best overall
Issues an online proof of insurance instantly
Fastest general liability insurance for tour operators
Great customer service and reputation
Excellent rates
Outstanding value for money
Get a 10% discount if you buy two or more policies
Couldn’t find any
NEXT offers a variety of different coverage options for tour operators. They have general liability, professional liability, commercial auto, business owner’s policy, and many more. NEXT has a stellar track record with a financial score of A- from AM Best and a customer satisfaction rating of B+ from the Better Business Bureau.
Best for: Best overall; Fastest general liability insurance for tour operators
Average cost: $20 per month
Our rating: 10/10
Renowned company for workers compensation insurance
High satisfaction with claims
Can underwrite specialized policies for high-risk business lines
Limited add-ons to general liability insurance
The Hartford has experience with the tour operator and travel industry that allows them to offer knowledgeable and experienced policies. They have 200 years of industry experience and help you get coverage online in minutes. The Hartford has an A+ rating from AM Best and an A+ rating from the BBB.
Best for: Workers compensation insurance for tour operators
Average cost: $23 per month
Our rating: 10/10
Compare quotes online
Convenient dashboard for policy tracking
HNOA coverage automatically included in general liability insurance
Not an insurance company but an insurance broker
CoverWallet has policy options for tour operators like cyber liability, workers’ compensation, and business owner’s policy. They offer excursion insurance designed for tour operators that helps them be recommended by hotels and covers risks that your travel customers face. CoverWallet has an A+ rating from the BBB
Best for: Comparing tour operator insurance quotes online
Average cost: $26 per month
Our rating: 10/10
A large number of partners
Helps connect you to the right provider
Compare quotes over the phone
Have to call to start a quote
Tivly is a digital insurance solutions company that offers tour operator policy components like workers’ comp, commercial auto, and general liability. The company has over 200 partners that they help connect you with. Tivly has an A rating from the BBB and takes a solutions approach to insurance. This means that they determine what your business needs are and connect you from there. Call now to compare quotes over the phone.
Best for: Best selection of partners for tour operator insurance
Average cost: $27 per month
Our rating: 10/10
Quickly issues an estimate of your rates
Numerous add-ons to general liability insurance and BOP
Get general liability insurance as a short-term policy
You can’t reach customer service by calling
Thimble is an insurance company with extensive experience in the tour industry. They offer general liability, professional liability, business owner’s policy, and other options for your tour operator's policy. The company has a great selection of resources to look through and help you get your certificate of insurance within 60 seconds of starting the process. Thimble has an A+ rating from the Better Business Bureau.
Best for: On-demand coverage for tour operators
Average cost: $29 per month
Our rating: 10/10
14-day money-back guarantee
Numerous add-ons to base policies
Worldwide coverage
Online quoting not available all the time due to periodic site maintenance
Hiscox is a small business-focused insurance company that goes for the quality of their policies over quantity. They can help your tour operator business narrow down a few policies that serve their needs best. Hiscox has a Fitch rating of A+ and an A rating from AM Best for financial strength.
Best for: Tour operator insurance with worldwide coverage
Average cost: $32 per month
Our rating: 10/10
TravPro program offers worldwide protection for tour operators
Paid legal defense
Quote process can be slow
AON tour operator insurance is the mother company of CoverWallet and helps tour operators get coverage for worldwide protection if meet requirements. They offer protections like general liability, professional liability, personal injury, and more. They offer a $5 million per occurrence and $5 million annual aggregate policy limits if you qualify for it. Aon has an A rating from AM Best.
Best for: Extra worldwide protection options for tour operators
Average cost: $34 per month
Our rating: 8/10
1 / 5
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
1 / 5
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
1 / 5
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
5 / 5
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
5 / 5
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!
Not all those who wander are lost.
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