Do I need Tour Operator’s Liability Insurance?

Airports and ports are packed with holidaymakers, and this season is proving to be the busiest in recent years due to the lifting of COVID-19 travel restrictions. With tour operators enjoying being back up to capacity, having the correct insurance in place is a priority. Tour Operator’s liability insurance is a ‘must have,’ and here is some useful information from our Mann Broadbent team, who are experts in leisure insurance.

Tour operator’s liability insurance – know the facts!

If you are a tour operator or travel agent, you are responsible for ‘proper performance of the contract’. This essentially means that if a certain aspect of the trip or holiday doesn’t go to plan, you can be held liable as a tour operator. This also includes the actions or inactions of subcontractors and suppliers.

Having tour operators’ liability insurance can help safeguard against headaches further down the line. It 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.

By combining professional indemnity with public liability, a tour operator will have an insurance policy that will cover you for risks that you may face. This could include misbooked accommodation or a family member being injured on an excursion. Whatever the situation, your tour operator’s insurance policy will be there to assist you.

You may also be advised by the Package Travel Regulations that you need to protect your client’s money with insurance, a bond or a dedicated bank account. It is also advised that you need to obtain an ATOL bond if you arrange flights.

We also recommend you take out entry refund protection insurance, which could help you and your clients if you purchase tickets online. For example, organising tours, trips, or events would give your clients a full refund when they cannot attend an event for a genuine reason, without the hassle of the paperwork, thus saving you time and money.

If you are a tour operator and would like to review your existing insurance policy to see if you have the correct cover in place, call the Mann Broadbent team on 01905 612336 or email Enquiry@mannbroadbent.co.uk.