As a tourism operator, it's important to protect your business against unforseen events such as damage to assets, legal claims, and injury to employees.
- WHERE TO GET INSURANCE?
- WHAT TYPE OF INSURANCE DO I NEED?
- WHAT INSURANCE COVER DO I NEED?
- DID YOU KNOW?
The National Insurance Brokers Association provides details about insurance cover and policies most commonly used by small businesses. They have a search function to help you find an insurance broker in your area.
- You can get quotes from insurance brokers who specialise in the tourism industry.
- Search the yellow pages.
- Contact your state or territory tourism industry association for recommendations.
There are many different types of insurance available for your business.
The insurance that is right for you will depend on many things such as the nature of your business and whether you employ people.
Insurance can be divided into protection for three main categories:
- assets and revenue,
- liability, and
Many insurance providers will offer several types of insurance bundled in a package.
ASSETS AND REVENUE
This category of insurance covers the risk of breakdown and damage to business assets such as vehicles, machinery, plant and equipment.
It also includes risk to revenue such as interruption to your business through key person illness or weather.
This category of insurance covers the risk of liabilities imposed by lawsuits and similar claims.
It protects the insured in the event he or she is sued for claims that come within the coverage of the insurance policy.
One of the most common forms of insurance within this category is public liability. Within the tourism industry public liability insurance to the value of $10 million is standard.
Your insurance policy should note the range of activities you provide in your business. Also, if you subcontract any activities, you should ensure that your contractors have adequate public liability Insurance cover.
It is compulsory to provide workers compensation insurance for all workers. It is important to remember that sole traders and partners are not covered by worker's compensation insurance, but may be able to get income protection insurance.
Working directors of companies need to specify that your workers compensation insurance covers you.
A thorough and easy way to work out what type of insurance you need for your business is to do a quick risk assessment. This will highlight potential issues and what type of insurance would cover it. Use the example table below to create your own risk assessment.
|DESCRIPTION OF POSSIBLE RISK||ROLE OF INSURANCE||CATEGORY OF INSURANCE|
|You have no staff trained and are taken seriously ill and are unable to work in the business||Pay an income similar to what would have been generated if business could operate||Assets and revenue|
|A client falls whilst getting out of your tour vehicle and breaks their ankle||Cover the costs associated with any liability claims||Liability|
|An employee suffers dehydration whilst on tour and is rushed to hospital||Cover medical costs||Employees|
To find out more information visit SBDC's website.
Before selecting an insurance policy or package that serves the specific needs of your tourism business, it is good idea to get professional advice to help you decide on the most suitable insurance for your particular circumstances.
- Most booking agents will not sell tourism products on behalf of operators unless the operator can prove they have current public liability insurance and all the relevant permits for their business.
- If you are purchasing or using any plant, equipment or property for your business, and do not insure it, you are putting your investment at great risk.
- Income protection insurance can protect your income in case of accident or illness.
- By law, if you are employing staff you will need to take out workers' compensation insurance.
- If you don't have the right level of cover you may be out of pocket after a claim.