Tour Operator Insurance

Liability insurance refers to several types of insurance that cover lawsuits against tour operators. These policies protect your business financially and provide peace of mind to clients and others who rely on your business, which is why they're often required.

Here are the top liability insurance policies and when you might need them:

• General liability insurance covers accidental bodily injuries and property damage that happen during a tour. You may need it to obtain a business license, rent a commercial space, get permits to tour certain locations, and sign contracts with travel agencies, vendors, or cruise lines.
• Professional liability insurance, or E&O insurance, provides financial protection if a tour operator is sued over a booking error or failure to deliver a promised experience. It may be required by clients, vendors, and host agencies.
• Workers' compensation insurance is required in most states, including New York and California, as soon as you hire your first full-time or part-time employee. It pays for medical treatment if a worker is injured on the job, provides them with disability benefits while they're recovering, and typically includes employer's liability insurance to protect against lawsuits from injured employees.
• Commercial auto insurance covers accidents involving company vehicles and it's required in almost every state when your business owns a vehicle.

Host agencies and clients may require proof of insurance or ask to be listed as an additional insured on your policy. Our agents can help you find the right insurance solutions for your risks and endorsements for some exclusions, such as trip cancellation insurance, travel insurance, or coverage for skydiving, bungee jumping, and similar activities.

Other common types of tour operator and tour guide insurance include:

• Commercial property insurance covers your office and its contents in the event of a fire, storm, theft, or similar incident. You can bundle it with general liability insurance in a business owner's policy (BOP).
• Business interruption insurance helps pay for day-to-day expenses and reimburses loss of income if a tour company is forced to close due to a fire or other covered property claim. It's also called business income insurance.
• Hired and non-owned auto (HNOA) insurance provides liability protection in the event of an accident involving a personal, rented, or leased vehicle used for business purposes.

Our insurance agents can help you find the best insurance plan for your business and answer any questions you might have about coverage.

Here are several ways that tour operators can save money on insurance:

• Shop around. Insurance companies often charge different rates for the same coverage. You could call each carrier to get their rates, or rely on an insurance agent or insurance broker like Insureon to help you compare quotes in one place.
• Choose less expensive coverage options. Policies with lower limits and higher deductibles cost less. Make sure the limits are sufficient to cover a claim, and that you can easily afford to pay the deductible.
• Pay the full annual premium. You can choose between monthly and annual premium payments, with a discount usually offered when you pay the full annual amount.
• Skip optional coverages. The right policy covers your risks, without offering coverage you don't need. For example, you can save money on car insurance by skipping comprehensive coverage, which covers physical damage from falling branches, collisions with deer, and other uncommon incidents.
• Reduce your risks. Focus on customer safety and employee safety to avoid costly accidents and subsequent claims that drive up your premium.

Remember, the cheapest policy isn't necessarily the best choice. Without sufficient coverage for a potential lawsuit, your travel company could end up paying exorbitant legal fees out of pocket, which could easily bankrupt your business.