Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Mar 19, 2020

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Tourism Business Insurance

The nature of the tourism business dictates that owners of such businesses are vulnerable to multiple risks depending on the specifics of their organization. Having insurance reduces the risk of loss when an unexpected event occurs.

This may cover the financial burden of losses due to property damage such as floods, fires, or automobile accidents, or stolen property.

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If the business property is not recovered, insurance may reimburse the owner for all or part of the losses, depending upon the stipulations of the policy and the value of the property.

Tourism business owners benefit from insurance that prevents loss of revenue due to claims brought against the company as a result of accidents or injury.

Risk Related Tourism Activities

When you run a business that caters to travelers, every trip holds an opportunity for accidents and errors. From transportation to excursions the operator can be help liable for many things that may go wrong. Examples of tourism activities and circumstances that put people at risk include:

  • Tourism Business Insurance For Owner

    Injury- Persons participating in tourism activities could be at risk for injury. For instance, an individual participating in a nature walk or hike could trip or fall on the trail. An injury from the fall could result in litigation, especially if the trail owner was found to be negligent in keeping up the trail. Retreat centers that offer team building exercises such as chartered bus trips or transportation obstacle courses, or confidence courses could also be vulnerable to risk from persons getting injured while participating in activities.

  • Food Related Illnesses- Pick-your-own farms often have snack bars that sell homemade goodies like ice cream, fresh cider and sandwiches. The food sales aspect of these operations could put customers at risk for food borne illness.
  • Transportation- It is not uncommon to hear of bus accidents, so a tourism business that offers  should be concerned about vehicle accidents that could injure several persons. Owners need to consider specific commercial auto insurance for these needs.

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Reduce Financial Risks

Living in a litigious society underscores the importance of reducing the financial risks associated with the tourism business. Tourism attracts all types of individuals from very responsible persons to those who take unnecessary risks. However anyone can end up in a situation that could lead to injury and could cost a tourism business big money.

A bus accident could not only affect the passengers on the tour bus, but also other vehicles and people.

Tourism businesses can suffer losses due to destruction of property and theft. Vehicles may be vandalized or stolen. There can be destruction of property due to natural disasters like storms or floods.

Outdoor Tourism Business Insurance

In the case of a business that depends on outdoor activities a natural disaster could result in costly repairs to restore grounds, trails or recreational equipment. In some situations employees of a tourism business can be at risk for injury.

A zoo where exotic animals are kept would be an example of this situation. If a worker was injured in this environment, he or she may seek damages if the injury was due to negligence on the part of the business owner.

Agricultural tourism activities are becoming more popular.These nature based tourism activities may take place in the woods, on a ranch, or in a wide variety of other outdoor venues. The potential for injury is as varied as the type of adventures.

Adequate Coverage

Tourism business owners should assess their activities to make sure that coverage is adequate. The insurance agent will be able to assist a business owner in determining the levels of coverage appropriate for the situation. The following types of coverage should be considered for tourism businesses: public liability insurance, passenger liability, and indemnity insurance.

Liability Tourism Business Insurance

Public liability insurance provides coverage when a customer or guest is injured on the property while participating in an activity. This type of coverage pays damages when negligence is determined to be the cause of injury.

Liability insurance to cover passengers who ride in cars or in vans protects riders who are transported for tourism purposes. Land, air and water transportation can all put passengers at risk of injury. It should also be noted that vehicles can break down and require repair or roadside assistance. Should a vehicle break down, a substitute vehicles may be needed to transport passengers. Policies should also cover these types of incidents.

Indemnity insurance provides coverage when a client or customer brings a lawsuit because of neglect or breach of contract.

If a tour is arranged and, for some reason, the tourism business operate cannot honor the terms of the contract, a customer could sue for breach of contract.

In addition to these areas where tourism business insurance could reduce financial risks, a lawsuit can tie up a business for months, if not years. Attorney fees, court costs and other financial responsibilities should also be considered when seeking insurance. Covering all the bases regarding potential losses can assure that the business has adequate coverage to reduce losses to the owner, employees and others who have a stake in the operation.

Coverage For Tourism Business Insurance

You can listen to a Travel Business Success podcast on the topic of protecting your business from various liabilities here.

Comparing Coverage Options

The lowest priced insurance is not necessarily the best deal when it comes to getting adequate coverage. It is important to discuss insurance needs with a licensed insurance professional who can ask the right questions to determine the level of coverage needed. In the long run, a tourism company will save money by having adequate tourism business insurance coverage, even though it may cost more up front.

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