Liability Insurance for Guided Tour Companies
Protecting Guided Tour Companies on Land, Sea or Air
New York City has always been a center of attraction. It welcomes up to 65 million visitors each year. Of these visitors, about 50.6 million are domestic and 11.6 million are international. That’s great news for the Big Apple and equally good news for companies that show these visitors a good time. Take the famous Circle Line Sightseeing Cruise around Manhattan Island, or the hop-on, hop-off, open-air bus tours, or walking tours — not to mention the new guided bike and Segway tours.
Of course, Washington, D.C., Chicago, Las Vegas, and other major cities have their fair share of guided tours — whether by land, water, or helicopter. After all, there’s a lot to see in our great country. What do these guided tours have in common? The potential for great profits — and risk.
What are some of the most common risks associated with guided tours?
Baggage Loss
Baggage loss can be an inconvenience at best and dangerous at worst if your clients are carrying important information or medication in their luggage. On planes, 5.8 out of every 1,000 checked bags are lost, delayed, damaged, or pilfered. These losses can occur on tours, too, such as buses or boats.
There is also the risk of stolen personal items. While people may not care about a T-shirt or a pair of shoes, if their money or passport goes missing, it can be a massive problem.
Transportation Malfunctions
Transportation malfunctions are also a risk to consider. These malfunctions could happen due to issues with the vehicle or an oversight on the part of operators. Consider the incident involving a sharp turn in an airboat in the Florida Everglades, which caused the boat to capsize, sending passengers into alligator-infested waters. In another incident, a bus from Massachusetts taking passengers to Niagara Falls crashed, killing one and injuring 28 others.
Health Issues
You may also run into unexpected health issues. If you feed participants, they may get food poisoning. If the excursion involves activity, such as biking or walking around an area, those with medical conditions or underlying health issues could face challenges that may lead to injury or even death.
Accommodation Concerns
Depending on your location and the destination of your tour, a lack of proper accommodation could leave you out in the cold. Many longer tours arrange hotel stays or other lodging for their guests. If the group arrives and guests don’t have the lodging they expected, they could become upset or even experience health impacts, especially in a cold area.
Insurance For Guided Tour Companies
How to Decrease Guided Tour Risks
What can you do to decrease these risks on your guided tours?
Inform Your Travelers
Make sure you provide information about the area you’re traveling to in advance. We all love booking a trip on a whim, but your clients must know what they’re getting into before paying for their tour. Offer details when booking and safety briefings before you leave.
Encourage your travelers to take health measures before they arrive. This measure could be as simple as taking Dramamine if they’re prone to motion sickness or as complex as necessary vaccinations before they arrive if they’re traveling from a different country.
Understand Specific Needs
You also need to understand your travelers’ specific needs before they join the tour. You don’t need to be invasive with your questions, but you do need to know anything that could potentially put them at risk during the tour. For example, they may have a related phobia, such as drowning or a health issue that influences travel.
Check on Vehicles and Tour Operators
A broken-down vehicle can be more than an inconvenience for your guided tour. Sudden malfunctions or breakdowns could endanger the trip and expose passengers to potential injury or harm. Regular inspections and maintenance enable you to keep the tour equipment in good condition so it runs smoothly.
If you run a tour company, pay close attention to the people hired to operate vehicles like boats or buses. Ensure they have the necessary qualifications and experience. You can also keep records of their operating history and any relevant incidents. Add to their expertise through training like first aid and CPR so they can respond quickly and effectively in emergencies.
Get Proper Protection
Finally, you’ll need to obtain guided tour insurance to protect both you and your clients in the event of an incident. Tour operator liability insurance solutions can help protect from financial losses and legal liabilities related to accidents, injuries, and property damage during tours. It can also assist with claims of errors and omissions or negligence in providing services.
XINSURANCE Tour Guide Insurance Solutions
You should always be prepared for the unexpected if you’re offering guided tours. One of the best ways to do that is to obtain guided tour insurance. Danger is inherent in every tour, but it doesn’t have to damage your business. Our team at XINSURANCE can help you learn more about guided tour insurance options for your business and what insurance tour operators need.
XINSURANCE is powered by Evolution Insurance Brokers, an insurance brokerage. XINSURANCE works with you to find specialty insurance solutions for your organization’s risks and liability issues, including property and casualty insurance solutions — and tour operator insurance solutions for guided tour companies.
XINSURANCE provides an all-in-one approach to identifying insurance solutions that allow business owners to have broader coverage, up to $20 million limits in the event of a covered claim, flexible underwriting, risk management expertise, extraordinary claims results, and a partnership approach. With us, guided tour companies can rest assured they’ll be around to welcome millions of more visitors to their great city.
Get a Quote!
You can complete the quote process online. Once you finish, we will have an underwriter contact you about the quote request and discuss insurance for tour guides. Get started today!
Last updated on March 10, 2021.
Authored by Rick J. Lindsey, President, Chairman, and CEO of XINSURANCE
Rick J. Lindsey hails from Salt Lake City, Utah. He began working in the mailroom of his father’s Salt Lake City insurance firm, getting his introduction to the business that became his lifelong career. Rick J. Lindsey quickly rose through the ranks while working in nearly every imaginable insurance industry job. As an entrepreneur, specialty lines underwriter, claims specialist, risk manager, and a licensed surplus lines broker, Rick J. Lindsey is highly skilled in all levels of leadership and execution. As he progressed on his career path, Rick J. Lindsey discovered an urgent need for insurers willing to write policies for high-risk individuals and businesses. He was frequently frustrated that he could not provide the liability protection these entities desperately needed to safeguard their assets. He also formed the belief that insurance companies acted too quickly to settle frivolous claims. Rick J. Lindsey decided to try a different approach. He started an insurance company and became the newly formed entity’s CEO. This opportunity has enabled Rick J. Lindsey to fill a void in the market and provide a valuable service to businesses, individuals, and insurance agents who write high-risk business. XINSURANCE also specializes in helping individuals and businesses who live a lifestyle or participate in activities that make them difficult for traditional carriers to insure. If you’ve been denied, non-renewed, or canceled coverage, don’t give up quite yet. Chances are XINSURANCE can help.