Working out which insurance policies you
need as a tourism business can be a headache. There may be many choices for your needs
and policy fine print to wade through. We’ve been through a hard insurance
market cycle. That’s when insurance companies’ profitability and losses can
restrict their offerings to you and bump up premiums.
This article explores five of the most
important policies for tourism businesses to hold, including:
- Public and
- Property damage
and business interruption
Public & products liability
Public liability cover protects your
business against financial loss from a claim if a member of the public was
injured due to your business operations, including your products. This also
applies if your business caused third-party damage.
Tourism businesses should consider public
liability insurance coverage a necessity. It can be part of your contract
obligations with other parties. As well, it can be a condition that state and
territory governments impose on councils and other landholders – where you may
be holding your events, for example.
Depending on your tourism business type,
size and location, typically, you’ll need $10 million coverage. Ensure your
contractors also have public liability insurance by asking them for a
certificate of currency.
Management liability insurance can come
to the rescue if your business, directors, officers, or employees – past and
present – face a claim from mistakes or deliberate actions (such as fraud).
Coverage could include incidents such as:
- Workplace Health
& Safety Incidents
- Tax Audits /
- Employee Theft
- The actions of a
director or officer
However, exclusions may be a deductible
or excess and limits on the cover.
When you have employees, workers’
compensation insurance is compulsory. This covers them for injury at work or a
physical or psychological illness due to their work. This includes:
- Their wages
while they aren’t fit to work, and
- Medical expenses
Check your state or territory’s regulator for more information
about this safety net for your staff. Each scheme differs in coverage,
benefits, return to work, self-insurance, common law, dispute resolution, and
Business interruption insurance comes in
handy when a natural or man-made disaster, such as fire, affects your tourist
company. Such a policy offers financial support to:
- Maintain your
anticipated net profit
- Pay key
- Cover continuing
overheads, such as power, rent and other utilities
- Pay costs to
train operators of replacement machinery
- Foot the bill
for extra working costs, in some cases.
This policy means you can keep running
your business as your ongoing costs are covered while you recover and rebuild.
In short, it helps protect your cash flow so you can get through the disaster.
Business interruption cover is part of
property insurance cover. When one of your business assets is damaged, and you
can’t trade, your property insurance policy covers it. That policy comes into
effect before business
interruption cover is triggered. This policy even covers you when a supplier’s
premises is damaged and negatively effects your business operations.
Helping you decide
We can discuss your business risk profile
and appetite with you to customise a package of policies to suit. Our expertise
saves you time and, often, we can access a discount or more generous policy
limits by bundling your cover into a package. We’re here to help.
The Show Must Go On: Is a discretionary mutual fund the solution to the insurance crisis facing Australia’s amusement,leisure and recreation sector? Final Report, 6 December 2021
This content is created and provided by Finnigan Investments
(Australia) Pty Ltd trading as OneAffiniti on behalf of Austral Risk
Services, and is for commercial purposes. Any financial product advice in this
content is provided by Austral Risk Services AFSL No. 244369. This material is
general in nature and has been prepared without taking into account your
objectives, financial situation or needs. Accordingly, before acting on it, you
should consider its appropriateness to your circumstances.