Tour Operator's Liability insurance

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Why do I need Tour Operator’s Liability insurance?

Tour Operators and travel agents are responsible for the ‘proper performance of the contract’, which means they can be held liable if aspects of the trip or holiday don’t go to plan, which can include the actions or inactions of subcontractors & suppliers. The Package Travel Regulations specify that tour operators must have relevant insurance in place to protect their customers.

Tour operator’s liability insurance, or travel agent insurance, is designed to defend tour operators if they are accused of failing to supply what the customer was expecting or if something goes wrong on the trip for which the traveller holds you responsible. You don’t have to be at fault, but if something goes wrong with the package, the customer is often entitled to claim against you.

What does Tour Operators’ Liability Insurance Cover?

Tour operators’ insurance is designed to cover a wide range of eventualities and is also designed to satisfy the Package Travel Regulations. You may not be directly responsible for what has gone wrong, but as the tour operator, you may have a legal responsibility. Typically, a policy will include:

Professional Indemnity – This is if you are accused of making a mistake, error or omission in relation to the tour or package. For example, the customer says the trip varied from what was advertised, or a hotel room is double-booked.
Public & Products Liability – This is if a customer suffers an injury or loss on the trip. For example, the customer gets food poisoning, or they slip on a wet floor at the hotel
Employers’ Liability – This is to cover you if one of our employees is injured in the course of their work, it is also a legal requirement
Crisis management – This is an emergency service to help you if something goes wrong on the trip and you need emergency assistance, especially if this involves the safety of a customer.

We can also provide quotes for financial failure insurance to protect your customers’ money.

Frequently asked questions

How much does tour operators insurance cost?
What about high-risk activities and locations?
We see all kinds of tour operators, from those offering traditional hotel based city breaks and beach holidays in the UK and Europe, through to tour operators selling adventures in remote locations. Some more extreme activities and destinations are understandably harder to insure, but that does not mean it is impossible. We have experience in insuring some wild adventures, what we are looking for is good risk management and high-quality suppliers.
If you are a tour operator involved with high-risk activities in exotic or extreme locations, please contact us
How do I get a quote for tour operators’ insurance?
We find the quickest and easiest way to get quotes is to have a conversation with us first, in order to discuss what you do and do not need. You may have to complete an application form, but we will help you with this, and we will use that form to approach a wide range of different insurance companies, thereby saving you time and effort. Once we receive quotes back from all the insurers, we will be able to help you discuss the right cover for your business at the right price.
If you would like to get a quote for your tour operator business, contact one of our team.
What other insurance does a Tour Operator Need?
This depends upon your activities. Here are a few to consider:
Financial Failure – keeps customers’ money safe
Cyber & Data – if you suffer a cyber incident or data breach
Management Liability – cover for the business and its directors if claims are made against them for failing in their duties.
Office equipment & contents – damage or loss of your contents, computers, etc
Travel – travel insurance for your employees
Private Medical – private health insurance for named employees and family members
Why you should choose Sutcliffe & Co. for tour operators insurance?
Sutcliffe & Co are an independent brokerage with plenty of experience assisting tour operators. We can approach a wide range of insurance companies to find you insurance that is right for your business at a competitive premium. At renewal, we can review the market again to ensure that you are not paying too much. In the event of a claim, we will work for you to help you obtain a fair and speedy result.
If you would like to discuss tour operators’ insurance, please contact us.